A Brief Market Comment
Nvidia announced Jensen Huang’s resignation as CEO today and named CFO Colette Kress interim CEO. We shared our bullish case and the options trade we selected on it in today’s trade alert:
Our Basic Strategy
Our basic strategy is to buy equal dollar amounts of the Portfolio Armor web app’s top ten names, put trailing stops of ~20% or more on them, and replace them with names from the current week’s top ten when we get stopped out of a position—there are no options involved in this strategy.
Across 176 completed weekly cohorts, our top ten names have averaged a six-month return of 17.89%, versus 9.81% for SPY over the same periods.
Another Use For Our Top Names
We also use our top names in options trades, such as this one we finished exiting last month:
Equinor, the Norwegian oil and gas company, was a Top Names trade on May 27th. Here are its historical entry terms:
This trade filled at a $0.75 net debit.
We finished exiting it on October 16th:
Each completed trade’s entry and exit is documented in our public exits record.
A Top Names Performance Update
Before we get to this week’s top ten names, let’s look at the final, 6-month performance of our top ten names from May 7th.
Our May 7th cohort finished its six-month period down 11.41%, while the SPDR S&P 500 Trust ETF (SPY) gained 0.52%:
We now have six-month returns for 176 weekly Top Names cohorts since we started this Substack at the end of December, 2022. Here’s the beginning of that record:
[Skipping ahead so this post doesn’t exceed email length—you can see the top names returns for every week here.]
The final rows below show each cohort’s starting date, Top Names return and SPY return, followed by the average across all 176 cohorts:
You can click any date in the interactive performance table to see how each holding performed over the following six months.
This Week’s Top Names
Below are Portfolio Armor’s current top ten names as of Thursday’s close.
