The portfolio and indexes weekly return
The momentum portfolio did as intended this week. The following is the weekly total returns for the portfolio compared to the indexes
- Dow Jones 30 (DIA) was -0.50%
- Morningstar US market index -0.57%
- Momentum Analytics Portfolio: -0.72%
- SP500 Index (SPY) was -0.76%
- Total US market for the week (VTI) was -1.19%
- Nasdaq100 (QQQ) was -2.90%
Results by month since start of momentum investing
Here are the monthly results (to date) of the portfolio compared to Morningstar Total US Market index as benchmark
Month total return personal return index return
Mar 3.72% 2.68% 3.67%
Apr 0.55% -1.85% -9.09%
May (to date) -0.72% -0.75% -0.57%
I use Morningstar to track my portfolio returns. According to Morningstar,
Total Return Total Return measures the theoretical performance of your holdings for a specified period of time, taking into account the beginning and end values of your investments as well as dividends.
Personal Return Personal Return calculates the investor's returns, taking into account an additional factor in its calculation: the capital that you added or withdrew from your fund or portfolio throughout the specified period of time. The calculation of Personal Return illustrates how your allocation of capital has affected the performance of your portfolio.
As seen in the returns comparison, the momentum portfolio has done well compared to the total US market index.
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| Momentum Portfolio return (Bold green line), Morningstar US Market Index (Light Grey). Courtesy Morningstar.com |
Positions and Positions sizes
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| Positions and their proportion |
Buys/Adds this week
Sells this week
Score classification
- Score 0: Super bearish, no entry
- Score 1: bearish, no entry
- Score 2: Hold
- Score 3: bullish, entry or hold
- Score 4: bullish, entry or hold.
Momentum Updates of the Stocks in Portfolio.
| TICKER | / Score | / Vector | / % Profit/Loss of position |
|---|---|---|---|
| AMT | / 3 | / Declining | /-7.43% |
| MA | / 2 | / Declining | /-4.26% |
| WMT | / 4 | / Ascending | /-4.93% |
| CAT | / 3 | / Ascending | /-2.56% |
| PEP | / 2 | / Ascending | /-2.32% |
| MMM | / 2 | / Ascending | /-1.72% |
| AIG | / 1 | / Ascending | /-1.53% |
| HON | / 4 | / Ascending | /-1.16% |
| TMUS | / 4 | / Descending | /-0.71% |
| KHC | / 4 | / Ascending | /0.39% |
| DUK | / 4 | / Ascending | /1.08% |
| LMT | / 4 | / Ascending | /0.95% |
| IBM | / 4 | / Ascending | /1.42% |
| T | / 4 | / Ascending | /3.72% |
| TGT | / 3 | / Descending | /-6.09% |
| GD | / 3 | / Ascending | /-0.98% |
| DOW | / 3 | / Descending | /-0.97% |
| CL | / 3 | / Ascending | /-4.34% |
| WM | / 3 | / Ascending | /3.44% |
There is one small issue I noticed with my method. As you can see I bought AIG this past week but by Friday the momentum score of AIG was down to 1 which triggers the sell rule. In order to reduce whipsaws, I purposely set the time frame to be medium long of 60 days, which covers 2 months. This got me thinking, of substituting the ADX indicator with RRG momentum indicator ROC. Thus I will pick those stocks whose momentum vector is improving w.r.t other stocks in the group. I am using the SP100 index ETF OEF as control for the group. Hopefully this will reduce the short in-out trades which I do not want to engage in.
Thanks for reading!
Next post will be end of week 19, on or about May 14, 2022. Until then keep tracking the momentum!
