Global Markets - Technology Top and Bottom 20 - March 13, 2018

Cerundolo Investment Research    

Global Update  

Volume 1, Issue 3
March 13, 2018

Items of Interest:

In this report, we review the iShares Global Technology Sector ETF which is comprised of 116 companies with the following regional and industry group breakdown, source iShares.com:

After ranking the constituents in our multi-factor model, we find 79 companies, 68% 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: 

                                                                                      Relative to

                                                          Price                           ACWI

Percent of stocks in an uptrend:            61%                             57%

Percent of stocks in a weak trend:         37%                             34% 

As one can see, there is a very large list of stocks that have good absolute and relative trends in place, so we have very good breadth of upside participation. 

In this report, we highlight the top 20 ranked stocks using 5 year weekly logarithmic charts relative to the All Country World Index (ACWI).  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.  We have also attached 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.

Top 20 Stocks - Download Full Top 20 Report Here

• Following are the top 20 stocks of the Global Technology ETF (IXN). The two most important factor weightings are those of absolute and 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 IXN 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. 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.

Bottom 20 Stocks - Download Full Bottom 20 Report Here

• Following are the bottom 20 stocks of the Global Technology ETF (IXN). The two most important factor weightings are those of absolute and 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.