Thread by @PortfolioArmor

In late June, we added a new factor to the process we use to pick our top names.

Those are the names we estimate will do best over the next six months. We post them on our website and app for subscribers daily.

A quick thread about that.

The new factor was based on historical data we've been tracking which shows that, all else equal, securities that underperformed over the last week and month relative to their historic averages, outperform ones that did well over the most recent week and month.

Here's a look at how the top names picked in the first four weeks since we added this new factor have done so far versus $SPY.

After that, we'll show how our "plain" top ten (with no factors) has done.

June 24.

July 1.

One thing the new factor seems to be doing is getting us better entries into volatile names like $BOIL.

July 7.

July 14.

The "plain" top ten we mentioned above isn't displayed to subscribers.

We track it internally to gauge how well (or not) our factors are performing, and to adjust the factors accordingly.

Those adjustments are made each day the market is open.

Let's look at how the "plain" top ten has done so far from the same four dates.

June 24.

Another example of getting better entries in volatile names, the new factor kept us out of $TECS then.

July 1.

$TECS doing awful so far again.

July 7.

$EPV another leveraged ETF our new factor screened out this week.

July 14.

$EDZ too.

Looks like we're on the right track.