The Follow The Money weekly podcast on 19May featured Mebane T Fabar of Cambria Investment Management. He discussed a research report he wrote a couple of year ago titled Relative Strength Strategies for Investing. He goes back to the 20s using the momentum of various industry groups which beats buy and hold by about 70%. His study is similar to the Power 4 investing based on DWA momentum ETFs I mentioned in my note some time ago. The major difference is that Fabar uses the industry groups ETFs. and suggests the top 1, 2, or 3 ETFs. Fabar also has an ETF, GMOM, which invests in 1/3 of the top 50 ETFs based on momentun and trend. It is not a year old, but might be good to follow.
Another interesting podcast is from Wall Street Unplugged and on June 10, episode 318, featured “What the End of the World Looks Like” in an interview with Bill Bonner. You can almost see it starting in Greece where over the lat 4 days 3 billion Euros or about 3.5 billion dollars have been removed by depositors in Greek banks. It is an interesting, depressing interview.
IBD TBP’s Market Pulse is “Confirmed Uptrend” – time to invest. However both the Nasdaq and S&P500 indexes have had added another two distribution days for a count of 6 each. I’ve seen the number get as high as 7 before the trend change IBD changes the trend. It is too risky time for me to invest.
My current investments:
SPharmaceuticals has a price of 23.96, a sell price 22.81, a rank of 05, and is a Hold.
SHealthCare has a price of 241.15 a sell price 229.81, a rank of 06, and is a Hold.
SElectronics has a price of 86.77, a sell price 83.69, a rank of 08, and is a Hold.
SBiotechnology has a price of 273.66, a sell price 259.98, a rank of 01, and is a Hold.
ChinaRegion has a price of 36.89, a sell price 37.12, a rank of 07, and is a Sell.
Fidelity has a 1.5% redemption fee on ChinaRegion for any shares held for less than 90 days. I consider this another greedy fee Fidelity has on mutual funds which does not exist on ETFs. As of this weekend, FHKCX is down 3.72% since I purchased it. An ETF, CNTX, which China investments is up 16.87% over the same period. Both would be a sell, but the ETF does not have the greedy Fidelity redemption fee. FHKCX lost 1.9% on Friday, so even waiting a day or two to sell it could cost me more. It could also turn around and go gack up. I do not have a clue.
My portfolio changes this weekend:
IRA #1 – Sell China Region
IRA #2 – Sell China Region
My portfolio market exposure after this weekend’s changes:
IRA #1 – 00% invested
IRA #2 – 80% invested