Over the past month the most bullish stocks on Twitter from December out performed the S&p 500 index. It was up just over 3% while the S&P 500 Index was basically flat. This is the second month of gains for the portfolio. However, it is still lagging the S&P 500 index badly since roughly the beginning of 2014. The recent gains haven’t even been enough to to recover the losses suffered from September through November 2014.
This should be another reminder that you should never buy a list of stocks blindly. The most bullish stocks are a good list of candidates for long positions in a portfolio, but you need to do research before buying and of course time your entries. Here’s an example of how we use the most bullish stocks on Twitter find stocks and time purchases.
It’s the first Friday of the month so it’s time for a new list of stocks. This month Shake Shack (SHAK) made the list due to extreme bullishness on Twitter the day of it’s IPO. It doesn’t have a full month of data so we’re skipping it. As a result the eleventh stock in the list will take its place for tracking purposes.
You’ll notice the the gold stock ETF (GDX) is in the list. This is another good example of a stock I’d personally avoid at the moment but we include it for tracking purposes. The trade for GDX that we highlighted in early January has broken below it’s confirming uptrend line indicating the GDX should at least consolidate. I’d wait for another setup before making another trade or adding GDX to a portfolio.
Below is a performance chart and details of last month’s picks. I’ll update the numbers with closing prices sometime over the weekend.
|Start Date||Symbol||Shares||Start Price||Start Total||End Price||End Total||% Gain / Loss|