I recently shared my views that contrary to normal seasonal trading patterns, investors should expect their winners to be under pressure. I gave an example of a stock that I had sold out of my Top 20 Model Portfolio last week and also shared four other S&P 500 names that look vulnerable to me.
Today, I want to run a screen similar to what led me to call out the four names previously mentioned. Using Baseline, here is what I am doing:
- Russell 3000 member
- YTD price return > 20%
- 2-year price return > 50%
- Within 4% of 52-week high
- Price vs. 50dma > 105%
This resulted in 27 names, so I added one more factor to avoid selling a stock where the fundamentals might be rapidly improving:
- Next year earnings revisions past 3-months < +3%
Some of these are in the midst of being acquired, so I eliminated them. Here are the names that made the cut:
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