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    With the fall and winter coming up, I think it’s a good time to revisit a trading strategy we last discussed for slow-but-steady growth that is likely to provide benefits in 2015. This strategy can be applied to two-tier stocks, wherein the regular level of trading can move very slowly, but high-growth stocks should behave quickly. This investment strategy deals with a global index of ten cyclical stocks. The greatest potential success is when the stocks' performance tracks the major index in a symmetrical circle. Such stocks comprise the Core & Saver strategy, and they are ideal for those who already understand market correlations. For those who don’t understand market correlations, the strategy should exhibit higher correlations than the major market indexes. Investors who are about to rebalance their portfolios should sell stocks they consider to be laggards for good reason; in that case, the scalping opportunity has been present. The question remains as to whether or not the global index still aligns with investors’ objectives. This is what we discussed in our previous article. This week, the Global Market Index (GMI) had its 15th successive week of positive returns, up 1.3%. Our universe includes the top global momentum stocks by market cap (the Core & Saver list). The latest batch of returns provides an opportunity to pick up growth stocks for less than attractive valuations. The Forde International stocks - GREG (8.3%) and SCMP (7.3%) - moved up more than 19% on the week and are now expensive on historical valuation levels. These two stocks had double-digit positive returns in the same week, which should give pause to value investors. Since the portfolio is tilted toward cyclical stocks, which are very much in favor at the moment, we think investors should hold on until we see some serious downside risk on their stocks, in order to assess future risk potential. These factors may argue in favor of the slower active approach (i.e. more candlestick trading). The progress of the Forde International has been confusing. Our latest performance data shows us that the Forde International has lost 5.8% over the last six months. And yet, much of that loss was due to outright breaks from one of the portfolio criteria: the allocations for tech stocks. Since tech is such a hot growth sector, it has been the primary source of positive performance in the portfolio. And yet, after the tech rally faded in late 2014, the Forde International got stuck in neutral. In that manner, it returned an underwhelming 5.4% on the last six months. But this week, a double-digit positive return is encouraging - this uptick in momentum gives us the confidence to hold some of our more "expensive" positions for a bit longer. We'll start to reduce our overall exposure in another week or two. This strategy is one of those that will likely generate negative alpha over longer time horizons, in the sense that it provides good returns with less downside risk. In a simple sense, it is attractive when returns are slow but consistent, and usually gives back some capital in a market correction. But this is a strategy worth reviewing as we move closer to the year's end, as stock market activity might bring on a faster action on more rapid-decent momentum stocks. Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.
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