ValMo Trend Following Series - May 2021
For those of you who didn't see the introductory blog to this series, you can find it here.
In this blog (above) I take you through how I intend to beat the passive 'buy and hold' approach to investing by trading a low maintenance spread betting system for buying shares - in effect starting a Spread ISA, as Robbie 'Naked Trader' Burns coined it in his books.
ValMo refers to 'Value/Momentum' stocks. Trend following means that we're looking to capture long term bullish trends on UK stocks. Spread betting means (to UK peeps) that we're doing this all tax-free (like an extension to your ISA).
I intend to share every single trade on this website for you guys to follow along, or even copy. ("Always read the label")
To stay abreast of new positions and track record to date please visit: ValMo Trades Page.
May 2021 Trades
So our Value/Momentum Stockopedia screener has shortlisted the following UK stocks for us to trade.
As you can see from the chart, this initial selection of companies if traded (in equal measure) over the last 12 months would have returned +72.93% profit vs. +25.33% from the benchmark FTSE All Share Index over the same period.
So that should give us some confidence in the edge that this system could provide us with.
(Past performance does not guarantee future returns, it is just an indicative idea based on real historical data, may contain nuts).
Closed Trades From March
As you can see from the chart below the price closed below the 200 EMA, and so as per our system, we exited that position and will add in a new one that qualifies for our screener (see options further below).
New Trades For May
To remain informed of new positions and track record to date please visit: ValMo Trades Page.
I will choose one of the following 3 stocks to enter our portfolio upon market open, depending on the price. From a technical standpoint I'd prefer to take Lincoln as it's forming a wedge that price would hopefully break out of with volume to the upside. So tomorrow, out of the 3 below that's the one I'll try to add to our portfolio.
Lincoln Educational Services - PENDING MARKET OPEN
Lincoln Educational Services Corporation is a provider of post-secondary education. The Company operates in two segments: Transportation and Skilled Trades, and Transitional. The Transportation and Skilled Trades segment offers academic programs in the disciplines of transportation and skilled trades (automotive, diesel, heating, ventilation and air conditioning (HVAC), welding and manufacturing). The Transitional segment includes operations that are being phased out and consists of its campus that is being taught out. It offers programs in automotive technology, skilled trades, which include HVAC, welding and computerized numerical control and electronic systems technology; healthcare services, which include nursing, dental assistant and pharmacy technician; hospitality services, which include culinary, therapeutic massage, cosmetology and aesthetics, and business and information technology, which includes information technology and criminal justice programs.
Ex-Dividend Date: Dec 11, 2014
Vectrus- PENDING MARKET OPEN
Vectrus, Inc. is a provider of services to the United States Government across the world. The Company offers services, including infrastructure asset management, logistics and supply chain management, and information technology and network communication. Its infrastructure asset management services support the United States Army, Air Force and Navy, and include infrastructure services, security, warehouse management and distribution, ammunition management, civil engineering, air base maintenance and operations, communications, emergency services, transportation, and life support activities at various global military installations. Its logistics and supply chain management services support and maintain the vehicle and equipment stocks of the United States Army and Marine Corps. Its information technology and network communication services consist of sustainment of communications systems, network security, systems installation and life cycle management of information technology systems.
Ex-Dividend Date: N/A
Core Molding Technologies Inc - PENDING MARKET OPEN
Core Molding Technologies, Inc. is a manufacturer of sheet molding compound (SMC) and molder of fiberglass reinforced plastics. The Company along with its subsidiaries operates in the plastics market in a family of products known as reinforced plastics. It operates through manufacturing of SMC and molder of fiberglass reinforced plastics segment. It produces and sells SMC and molded products for varied markets, such as medium and heavy-duty trucks, automobiles, marine, construction and other commercial markets. It specializes in large-format moldings and offers a range of fiberglass processes, including compression molding of SMC, glass mat thermoplastics, bulk molding compounds and direct long-fiber thermoplastics, spray-up, hand-lay-up, and resin transfer molding. It offers reaction injection molding, utilizing dicyclopentadiene technology. It operates over five production facilities in Columbus, Ohio; Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota, and Matamoros, Mexico.
Ex-Dividend Date: May 21, 2018
Now our system requires us to simply sit and wait until the last trading day of the month, and if the price is above the 200-day Exponential Moving Average we'll hold our trade, and if it closes below at the end of the month (EOM) then we'll close it and open a new position if our screener gives us an option.
Again, to stay on top of new positions and track record to date please visit: ValMo Trades Page.
Below is a glance at the screenshots of how each trade ended the month: