Summary
- This article highlights current breakout stocks and ETFs as well as a 9-month update to prior articles showing the benefit of market timing.
- Top trades highlighted earlier this year include Palantir, Tesla, with strong gold breakout stocks each selected for unique strengths in timing, momentum, or value.
- Additionally, our analysis covers Hecla Mining, Coeur Mining, Centerra Gold, all from different types of short- and long-term value portfolios.
- For optimal returns, I recommend aligning trades with positive market and sector gauges and then confirming with MDA breakout signals on individual stocks or ETFs.
- The article concludes with highlights on ETF gold trading from our active ETF portfolio.
Introduction
Consider value and momentum, for example, which are negatively correlated. Ideally, you want a portfolio with stocks that have high exposure to both these factors and to avoid those with negative exposure.” ~ Berkin & Swedroe, (2016)
Timing matters, and it matters greatly. I have spent the last 35 years trading, researching, and constructing algorithms to identify and leverage the value across fundamental, technical, and behavioral finance models. Of the ten portfolio models designed for optimal portfolio mixes for members to beat the market at Value & Momentum Breakouts, eight come from enhancing well-tested anomaly research in published financial journals. All of the models continue to outperform the S&P 500 in live forward testing here on Seeking Alpha and again this year.
If you believe, like I do, that there is much more to stock trading than just buy, hold, and hoping that every future event works out perfectly as promised for your stock, then these trading models are for you. This article highlights some of our recent top trades from three very different portfolio models. These portfolios range from aggressive short-term weekly breakouts to long-term growth and value portfolios with high dividends, across both stocks and exchange-traded funds.
Trades from Different Portfolio Models
In this article, I provide a sampling of how we use the optimal portfolio models to identify long-term continued strength, and short-term aggressive breakout stocks and even apply timing models to long-term value stocks for the best results. As I repeatedly tell our investment community, it is important to not only diversify your stock selections, but it is also critical to be where the market fund flows are improving for the best returns.
As I detailed in my 2025 Market Forecast article, I am certain that we will see more rotation across sectors, securities, and different trading strategies again next year. Because no one really knows the future and rotations are virtually guaranteed, if you are just riding the buy-and-hold approach, you can find yourself in a painful situation.
