Trade Alert: Fundamentals Get A Vote
Giving a little more weight to fundamentals in this tape, with one exception: potential policy-led rerating in biotechs.
Same Sources Of Alpha, Tighter Selection
Our main inputs haven’t changed.
We’re still starting with Portfolio Armor’s Top Names, our most consistent source of alpha. We’re still using our Market Watchers X list as another source of ideas, along with our elite subset of that list: our Multibaggers: accounts with recent, documented, >100% winners. And we’re still filtering entries with the same technical screens: RSI, Chartmill Technical Rating, and Chartmill Setup Rating.
The tweak is more specific: in this choppy tape, we’re giving fundamentals a little more weight.
Friday’s trade alert made that point after the Korea selloff.
The AI buildout still has legs, but the market is getting more selective about who actually benefits. That makes us more interested in names where the theme, technical setup, and current fundamentals all line up.
Top Names Aligned With The Tape
As of Friday’s close, Portfolio Armor’s Top Names were already leaning in that direction.
Most of the top ten had solid fundamentals, including a few names where we already have recent trades. That’s useful confirmation. It means we don’t have to choose between our highest-ranked names and our current preference for stronger companies.
Today’s Top Names trades come from that overlap. They pass our technical screens, they sit in real infrastructure themes, and they have better current fundamental ratings than many of the more speculative names in this part of the market.
One of today’s Top Names trades is also a repeat winner for us. In addition, we have an open trade from March on it that’s well in-the-money. We’re adding longer-dated bullish exposure here because the company remains one of the best under-the-radar plays on reindustrialization and the AI power buildout.
When Policy Trumps The Screen
There is one exception today.
Potential policy-led biotech re-ratings don’t fit neatly into our usual technical and fundamental screen framework. When a regulatory shift changes the probability of approval, the market can reprice a stock faster than the screens can catch up.
We saw that recently with uniQure (QURE 0.00%↑) and ClearPoint Neuro (CLPT 0.00%↑) , which we discussed in The Biology Won.
One Multibaggers account had been pounding the table on both names ahead of the recent change in FDA leadership, and both re-rated sharply after the agency’s posture shifted.
That same account now sees similar potential in two other biotech names, for the same reason. Given that track record, we’re making an explicit exception to our technical and fundamental preferences for those two trades.
Tracking What Works
We’re also going to start recording a few screen inputs directly in the paid sections: RSI, Chartmill Technical Rating, Chartmill Setup Rating, and Chartmill Fundamental Rating.
That’s mainly for our benefit. It gives us a cleaner record to review later. If certain combinations work better across future trades, we want to see that in the results rather than rely on memory.
For the biotech exceptions, we’ll still record the stats. The point is not to pretend they pass our normal screens. The point is to mark clearly why we made the exception.
The goal here is to keep taking selective swings where the theme, the source, and the option pricing line up. Most of today’s trades fit the framework which includes technical and fundamental checks. Two of them fit a different one: a policy-led re-rating thesis from a source that already got the last two big ones right.
Full details below.
Today’s First Top Names Trade
AI data-center manufacturing / compute infrastructure theme
Screen data: RSI 44; Chartmill Technical Rating 9; Setup Rating 6; Fundamental Rating 6.
