Click on the images below for the entire TPA-RRG Report!
Top 20-Bottom 20
TECH and Communications companies have begun to overpopulate the TOP 20. Many of these companies and their sectors were badly beaten-up in 2022 and may now be reaching a long-term state of being washed out and under-owned on an institutional basis. TPA is not an economist, but unless the worst prognostications of a recession come to pass, there may be a lot of value here.
The performance of the Relative Rotation Fund (RRF), which hypothetically buys the TOP 10 and Sells Short the Bottom 10 stocks in the TPA-RRG Report continues to emphasize the power of this strategy. More on this below, but since its inception on 4/14/22, RRF has consistently outperformed the S&P500. The performance is now +12.46% more than that of the S&P500 since inception.
The charts of the top 3 are provided below.
The slow march of XLC (Communications) and XLK (TECH) up the rankings in the past 8 weeks is something TPA forecasted to clients, but also the inevitable rotation of stocks and sectors from out of favor to into favor. The recent TPA-RRG sector ranking history can be seen in the image below:
The market is also toying with the idea of breaking out of its 2022 downtrend. A confirmation of this breakout would lead to more outperformance by growth stocks that were devastated in the decline of 2022.
Jeff Marcus founded Turning Point Analytics (TPA) in 2009 after 25 years on trading desks and 13 years as a head trader to provide strategic and technical research to institutional clients. Turning Point Analytics (TPA) provides a unique strategy that works as an overlay to clients’ good fundamental analysis. After 10 years of serving only large institutions, TPA now offers its research services to mid and small managers, RIA’s, and wealthy sophisticated individuals looking for a way to increase their returns and outperform their peers.
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