Author: Jesse Barkasy
Covestor model: Trend Following
The general stock markets have had a smooth three-month uptrend. The Trend Following model is seeking and will seek the equity leaders if the market upturn continues. We are noticing a few stocks with accumulation patterns currently in an uptrend and we will test these stocks to see if they have leadership potential.
Unfortunately, we missed some past leaders as Apple (AAPL), Priceline (PCLN) and Chipotle Mexican Grill (CMG) that have re-established their trends as we were looking for new companies to lead a potential new bull market. Although these issues may continue trending, we are hoping to see some fresh new leaders begin to attract institutional money.
In the last few days of February, the trend slowed down a bit and we did see some stocks break down. One of the concerns we do have about the durability of this current uptrend is that we see some railroad stocks such as Norfolk Southern (NSC) and CSX Corp. (CSX) breaking below their 50 and 200 day moving averages.
