Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Visualizing the Holdings for a Dual Momentum Rotation Strategy

by 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
See inside Ford’s new tech campus, a century-old Detroit train station restored for $950 million

Related Posts

Late-Hour Selloff Confirms Downtrend Phase!

October 26, 2023

The Best Five Sectors, #4

January 25, 2025

Breaking Down the Heavy Earnings Week

July 31, 2023

Mastering GoNoGo Charting: Scanning Securities on StockCharts.com

June 29, 2024

The Best Five Sectors, #11

March 18, 2025

DP Trading Room: Tariffs Narrowing, Sparks Market Rally

March 25, 2025

The Best Five Sectors, #7

February 18, 2025

Meme Stock Frenzy Back In the Spotlight: Are...

May 15, 2024

Google Stock Expectations In the Spotlight: Will Earnings...

October 24, 2023

When These Levels Break, The S&P 500 Is...

March 28, 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.

    Latest

    • Larry Williams on the Fed, Interest Rates & Markets! What’s Next?

    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

    • Trump’s Nuclear Revival Plan Boosts Uranium Prices, Sends US Miners Soaring

    • Group Eleven Announces Appointment of Jasmine Lau as Chief Financial Officer

    • Charbone Hydrogene annonce les resultats financiers T1 2025

    Categories

    • Business (1,221)
    • Investing (2,498)
    • Politics (3,699)
    • Stocks (1,611)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.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 moneycontrolplace.com | All Rights Reserved