Screen Update – Small Cap Momentum Value
Here is this week’s update of the Small Cap Momentum Value project.
This week the system retreated a few percentage points. That’s not too surprising, though, after its recent run. INNO was a big drag on the portfolio, as it dropped 23% after being purchased last weekend. This week INNO has dropped off the MSN screen again, so it gets sold. PCCC, TBSI, WGA also dropped of the list, so they get sold as well. This leaves 4 open spots in the portfolio.
The MSN screen came up with a list of 10 stocks this week, a perfect fit for this 10-stock portfolio. Six of the current holding remain on the list. The 4 open spots are being filled by HAUP, KRSL, RFIL, and GOAM. Note that HAUP and GOAM are previous holdings. This screen has had a tendency to sell a stock, then buy it right back a week or two later. After looking into this, I found that this is usually a case of the system selling a stock when the Price/Sales ratio exceeds 2, then buying again after a pullback when the P/S ratio falls back under 2.
These 4 closed trades this week bring the total number of closed trades to 20, so this will be the final rebalance week. Next week I will post a final analysis of this test system.
To see past posts, along with a description of the system and MSN screen, see previous posts with the BW Momentum Value label (click on the label below).
(chart provided by Portfolio123.com)
