Global Markets - Industrials Longs and Sells - April 10, 2018

publication date: Apr 10, 2018

Cerundolo Investment Research    

Global Update  

Volume 1, Issue 4
April 10, 2018

 

Items of Interest:

In this report, we highlight the current ranking of the 11 global sectors using the iShares ETF’s. These sectors are ranked based on their absolute and relative trends, to the All Country World Index (ACWI), as well as momentum of those trends. The current ranking is as follows using week ending data of April 6, 2018:



We reviewed the iShares Global Industrials Sector ETF (EXI) which is comprised of 197 companies with the following regional and industry group breakdown, source iShares.com:




After ranking the constituents in our multi-factor model, we find 68 companies, 35% with a favorable score. As a refresher, the model ranks stocks based on a number of factors from benchmark performance, trending strength on an absolute and relative basis to name a few. The scoring is based on an intermediate-term time frame, so we are not interested in short-term wiggles and want investors to focus on sustainable trends. Some interesting stats are in the table below.



In this report, we highlight the top 20 ranked stocks using 5 year weekly logarithmic charts relative to the All-Country World Index (ACWI). Although the sector has a weak overall Multi-Factor Model Score, we have found a number of stocks here in the U.S. as well as Europe that have very good absolute and relative trend structure. We strongly feel that it is also important to highlight the bottom 20 ranked stocks as well. These would be considered a “drag” in a portfolio as both the absolute and relative trends remain in a weak position and should be avoided. Also attached is a spreadsheet with the complete list of the constituents where one can filter the universe based on the multi-factor score as well as the absolute and relative momentum and trend ranks. A score of 3.1 or greater should be considered on the long side. The higher the score, the stronger the underlying trends.

 

 

Longs - Download Full Longs Report Here

  • Following are the top 20 stocks of the Global Industrials ETF (EXI). The two most important factor weightings are those of absolute/relative trend and momentum of trend.  Each stock is measures against the All Country World Index (ACWI).
  • On page 2 we display the 20 stocks highlighted in this report and on page 3 you will find the five year weekly chart of the EXI and its relative performance vs. the ACWI.
  • Our proprietary CRTrender is displayed on each of the weekly charts, and this helps define the absolute trend of the underlying stock on an intermediate-term timeframe. This indicator uses a number of moving averages where the slope of each helps identify trend.  When green, the uptrend is intact, gray is a pause or possible transition, and red is negative.
  • Since most of our clients are intermediate to long-term oriented, our trending models are geared to those timeframes with the emphasis on high ranked relative performance.
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    Sells - Download Full Sells Report Here

    • Following are the bottom 20 stocks of the Global Industrials ETF (EXI). The two most important factor weightings are those of absolute/relative trend and momentum of trend.  Each stock is measures against the All Country World Index (ACWI).
    • On page 2 we display the 20 stocks highlighted in this report.
    • Our proprietary CRTrender is displayed on each of the weekly charts, and this helps define the absolute trend of the underlying stock. When green, the uptrend is intact, gray is a pause or possible transition ,and red is negative.
    • Since most of our clients are intermediate to long-term oriented, our trending models are geared to those timeframes with the emphasis on high ranked relative performance.