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Momentum Strategies With DJIA Stocks

Mar. 02, 2021 9:52 AM ETTLT, IEF, DBB, UUP21 Comments


  • Momentum strategies work well with a portfolio of DJIA stocks.
  • Among a number of alternative choices of "safe assets" for risk-off periods, we found that a good choice is an equal weight investment in Treasury Bond ETFs of different duration.
  • During risk-on periods, the strategy invests in the top 12 stocks based on their 3-month relative strength. The allocation is adjusted monthly, on the last trading day of each month.
  • Looking for a helping hand in the market? Members of Adaptive Momentum Investing get exclusive ideas and guidance to navigate any climate. Learn More »
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Momentum Strategy

In this article we apply the latest version of our dual-momentum strategy to a portfolio made up of the stocks in the Dow Jones Industrial Index. Restricting the stock universe to this selection of large, profitable and well-established companies is


Apply the results of our research to achieve superior returns while keeping losses manageable during severe market corrections.

Get access to our four portfolios:

  • High yield bond ETFs
  • Non-leveraged broad market ETFs
  • High 3X Leverage ETFs
  • Top Momentum Large-cap stocks

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This article was written by

Toma Hentea profile picture
Monitor market state (risk on/off) for successful investing
I am a retired professor of Electrical and Computer Engineering. Since 2011 I have been active in the AAII Chicago South Suburban chapter. My investment objective is to achieve high returns over the long run while allowing occasional downside corrections. Investment decisions are based on quantitative fundamental factors that take into account valuations, earnings growth and price momentum. Market exposure is varied in accordance to the state of leading US and global economic indicators. Options and leverage are used to enhance the performance of my investments.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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