What's Trending Into Q2?

|
Includes: ADBE, AMAT, AMZN, CMA, IDXX, NRG, NVDA, OKE, STZ
by: Trendrating
Summary

Strong trends from the beginning of 2018 continue to outperform.

Some banks remain strong despite the recent selling.

Nvidia tops our list of names to own in April.

"The Times They are a changin". Just 3 months ago we were ringing in the new year and the Dow Jones Industrial Average was near an all-time high. Amazon (NASDAQ:AMZN) was cementing themselves into the grocery industry, and their next industry target was anyone's guess. The strongest trends in equity markets belonged to technology stocks and chip makers.

It's certainly been a wild ride since then, with a roaring January market followed by a February correction. Markets seemed to be regaining their footing until mid-March, when talks of trade wars and data privacy took over the front page of the news, and markets again were near correction territory.

Through all of this volatility, has momentum really changed? Is this 9 year bull market nearing its last chord? What names continue to trend up despite the prospect of regulation in the technology sector?

On January 2, 2018, the following 10 names exhibited the strongest trends of any stock in the S&P 500 as measure by Trendrating's Smart Momentum Score.

Name Ticker Smart Momentum
NVIDIA Corp NVDA 3.00
Activision Blizzard Inc ATVI 3.00
Freeport-McMoRan Inc FCX 2.84
Micron Technology Inc MU 2.72
Amazon.com Inc AMZN 2.68
United Rentals Inc URI 2.66
Align Technology Inc ALGN 2.63
Applied Materials Inc AMAT 2.59
Albemarle Corp ALB 2.51
Lam Research Corp LRCX 2.50

These 10 names finished the month up 8.98%. That compares to the S&P 500 price index finishing up 5.22%. Taking the top 10 names at the beginning of every month would have resulted in the following performance:

Date Trendrating Performance S&P 500 Performance Difference
January 8.98% 5.22% 3.76%
February 1.75% -3.89% 5.64%
March 0.06% -1.37% 1.43%

The point is that momentum has done well through Q1 of 2018, even when accounting for the recent bout in technology related names. That's great to hear, but are the same names still exhibiting the best trends today? The answer to that ... yes and no. The table below lists the top 10 ranked names to begin Q2. While some top technology and semiconductor names like Amazon and Nvidia (NVDA) remain, the top momentum stocks are now more diverse than the beginning of the year. Particularly, Comerica (CMA) is a $16 billion bank that held up well in recent sell-offs, and the only bank to make the top 10 so far this year. Oneok (OKE) is a $23 billion natural gas pipeline company that has also held up well, and represents the first pipeline company to be a top 10 trender this year.

Name Ticker Smart Momentum
Nvidia NVDA 3.0000
Amazon.com AMZN 2.8406
United Rentals URI 2.6642
Applied Materials AMAT 2.6450
Adobe Systems ADBE 2.5915
Comerica CMA 2.5154
NRG Energy NRG 2.5145
Oneok OKE 2.5011
Idexx Laboratories IDXX 2.4742
Constellation Brands STZ 2.4628

Momentum remains strong, and Trendrating's signals have provided investors with YTD gains far outpacing the S&P 500.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.