Short Term Growth Portfolio

Yesterday, the  STG Portfolio was affected by the market and the behavior of one of its stocks. Indeed, Vivus Inc. (VVUS) closed at US$ 11.15 (-7.05%) activating the "Stop" established in the portfolio. It is noteworthy that the numbers behind the major indexes on Wall Street is not very favorable behavior. This has been particularly evident in medium and small stocks. For example, in the case of the Russell-200, only 600 stocks ended the day with gains, while 1,400 were lost. In general, I appreciate that sellers took control of the market after 1.30 pm.

Short Term Growth Portfolio (STG) includes two types of stocks.  One the one hand, select stocks that are showing outstanding performance in the last 26 weeks. Stock picks are carefully performed taking into consideration various factors such as the Daily volume of shares, the price performance during this period and the momentum. In this process we used five technical indicators. Some of them, try to identify the trend of stocks and others are oscillators.These elements allow us to select "long positions".

On the other hand, consider stocks that are showing very poor performance in the last 52 weeks. Stock picks are made carefully taking into consideration various factors such as the daily volume of shares (must be high enough to close a position quickly), the evolution of prices during this period and the momentum. In this process, we use also, five technical indicators. Some of them try to identify the trend of stocks and other are oscillators. These elements allow us to select the "short positions".

The average tenure of a stock in this portfolio varies between 1 and 30 days. The number of stocks in this portfolio varies between 8 y 10.