Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Stocks

Visualizing the Holdings for a Dual Momentum Rotation Strategy

by admin June 4, 2024
June 4, 2024
Visualizing the Holdings for a Dual Momentum Rotation Strategy

As the name suggests, Dual Momentum Rotation Strategies focus on stocks that are in absolute and relative uptrends. This is a two-step process. First, filter out stocks that are in long-term downtrends and only focus on stocks in uptrend. Second, rank the stocks by a performance indicator and focus on the strongest. Note that TrendInvestorPro runs two Dual Momentum Rotation Strategies.

Traditional trend-following indicators, such as the 200-day SMA, measure absolute momentum. For example, a stock is in a long-term uptrend when above its 200-day SMA. Stocks trading below their 200-day SMAs are in long-term downtrends and do not make the cut for the second step.

For stocks in long-term uptrends, chartists can then quantify performance using the 200-day Rate-of-Change and comparing values to find the strongest. A stock with a 49% Rate-of-Change is stronger than a stock with a 19% Rate-of-Change.

The image below shows CandleGlance charts for the top Nasdaq 100 stocks. They are ranked by the 200-day Rate-of-Change (ROC(200)). “Add indicator” is Rate-of-Change 200 and “Sort by Indicator” is Descending (red outline). These 12 are also above their 200-day SMAs (red lines) and in long-term uptrends.

As the green ovals show, Nvidia (NVDA), Crowdstrike (CRWD) and Constellation (CEG) are up over 100% the last 200 days and the other nine are up 50% or more. Chartists running a Dual Momentum Rotation Strategy would be focused on these leading names when constructing a portfolio. Strength begets strength.

We use a similar process for our Dual Momentum Rotation Strategies at TrendInvestorPro. Instead of raw Rate-of-Change, we use a volatility-adjust version to level the playing field. NVDA, CRWD and CEG are part of the current portfolio for the Nasdaq 100 strategy. We also have a separate strategy for S&P 500 stocks. Both strategies are off to a great start this year and you can view full performance metrics here.

///////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
DP Trading Room: Upside Initiation Climax (Should We Trust It?)
next post
A Practical Options Strategy to Trade Home Depot

Related Posts

Equities Look for “Energy” in “Go” Trend

November 19, 2024

The V Reversal is Impressive, but is it...

May 10, 2025

Stocks Regain Some Ground Amid Rising Yields, Gold...

October 23, 2024

5 New Year’s Resolutions to Transform Your Financial...

December 28, 2024

Relative Strength Screams Bullish for This Tech Stock

May 11, 2024

The Semiconductors Have Topped; Look Elsewhere For Opportunities

June 23, 2024

S&P 500 Bullish Patterns: Are Higher Highs Ahead?

June 4, 2025

The Best Five Sectors, #2

January 11, 2025

DRI Stock Breakout Confirmed: Here’s What You Need...

March 25, 2025

AI Boom Meets Tariff Doom: How to Time...

December 21, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Market Signals Align – Is a Bigger Move Ahead?

      July 3, 2025
    • MACD Crossovers: Why Most Traders Get It Wrong

      July 3, 2025
    • Should You Buy Roblox Stock Now? Key Levels to Watch

      July 3, 2025
    • Missed Disney’s Rally? Grab This Defined-Risk Put Spread for a Second Chance

      July 3, 2025
    • State Department unveils patriotic ‘America First’ rebrand as part of sweeping makeover

      July 3, 2025

    Categories

    • Business (1,010)
    • Investing (2,524)
    • Politics (3,135)
    • Stocks (1,114)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved