QG Fund Update: Riding The Wave

quantitative growth

quantitative growthWhile the general market still feels like the bottom is poised to fall out at any minute, the DTAYS Quantitative Growth Fund is continuing to increase its exposure. This week’s activity consisted of exiting SAVE after it broke its 5-ATR line last week and then entering a new position in HDB, which hasn’t shown much progress just yet.┬áIn the coming week, the fund will add a position in AFSI and look to ride the wave/bubble for a bit longer.

Overall Performance

After a strong week, the DTAYS Quantitative Growth Fund has a current value of $98,263.84. This represents a loss of 1.74% on the year, compared to a gain of 3.74% for the S&P 500. While the QG Fund is still trailing the S&P 500, it has kept pace with the index since I made the changes recommended by Cesar Alvarez’s backtesting research.

Here is what each of the fund’s holdings looks like this weekend:

quantitative growth

Entries & Exits

The only exit that the fund made this week was selling SAVE on Monday’s open as we discussed last weekend.

After what seemed like a pretty strong week, I expected there to be quite a few stocks passing our weekend scan. Here are the stocks from this weekend’s IBD 50 that are at new 20-week highs:

quantitative growth

There were actually eight stocks that passed the initial screen, which is a lot more than we have seen in the past few weeks. Sorting by ROC, we find that only half of the stocks meet our minimum requirement. Of those four stocks, two have HV values about .40. That leaves us with TRN and AFSI as possible new entries. Since the QG fund already owns TRN, it looks like AFSI is the only option this week.

The QG Fund is currently comprised of 5 full positions and 3 half positions out of 10 total positions. That means we have 3.5 open slots to spread the $32,263.55 in available cash. Doing some quick math, we want to put about $9218 into the new position on Tuesday morning’s open. For those who are wondering, I looked it up: AFSI is some type of insurance company.