Momentum and Fundamentals (MF)

This setup puts together both technical and fundamental aspects. First, we examine peer groups in both Europe (Dow Jones Stoxx 600) and the US (S&P 1500) using GICS Sub Industry groups and then rank the individual stocks via 15 key metrics (P/Es, Price-to-Book etc.). These usually vary depending on the given sector. Second, using SRM we attach a ranking to each stock ranking from 0 (most overvalued) to 15 (most undervalued). Third, we compile a list of “preferred” and “not-preferred” stocks for each sector and assess their daily charts for either strong positive or negative momentum. Trading-wise, we then look to:

a) Buy preferred stocks that are rallying on strong bullish momentum
b) Sell not-preferred stocks that are selling off on strong bearish momentum.