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28 Stocks For October 2016 (Abbreviated Report)

|Includes: ACAD, ADM, AEO, AMAT, AMGN, APO, BX, CAT, CFX, COP, CS, CTAS, CTRP, CTXS, DATA, DB, DY, ELS, EME, FHN, FII, FMC, GNTX, GOOG, HA, HOMB, IDCC, JBLU, JEC, LCI Industries (LCII), LOGI, LOW, LRCX, LXP, MAR, MAS, MLCO, MPLX, NFLX, NTES, PFG, PTC, PZZA, RARE, SBGI, SPN, SYY, TRCO, TSLA, TSRO, TXN, UAA, ULTA, VIPS, VRSN, WDAY, WYNN

This is an update to last month's model portfolio report, "24 Stocks for September 2016 (Delayed Report)"

Below are the latest rebalancing actions for the theoretical model portfolio that rebalances monthly. A full report will follow shortly.

Favorite Long and Short Idea for October 2016
We think that a pair trade that is long Logitech International SA (NASDAQ:LOGI) and short NXP Semiconductor NV (NASDAQ:NXPI) may work well in October 2016.

Long Rebalancing Actions
As of the September 30, 2016 close, 4 stocks have left the long-only models, 8 have been added, and 20 are rebalanced. The 28-stock theoretical model assumes an equal 3.57% weight for each stock. The long models are composed of high-quality stocks.

Close Position
Drew Industries Incorporated (DW)
Amgen Inc. (NASDAQ:AMGN)
Alphabet Inc. (NASDAQ:GOOG)
Lexington Realty Trust (NYSE:LXP)

Hold/Rebalance
American Eagle Outfitters, Inc. (NYSE:AEO)
Vipshop Holdings Limited (NYSE:VIPS)
Papa John's International Inc. (NASDAQ:PZZA)
Lowe's Companies, Inc. (NYSE:LOW)
Gentex Corp. (NASDAQ:GNTX)
ULTA Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA)
Sysco Corporation (NYSE:SYY)
Apollo Global Management, LLC (NYSE:APO)
Federated Investors, Inc. (NYSE:FII)
Principal Financial Group Inc. (NYSE:PFG)
First Horizon National Corporation (NYSE:FHN)
Hawaiian Holdings Inc. (NASDAQ:HA)
Dycom Industries Inc. (NYSE:DY)
EMCOR Group Inc. (NYSE:EME)
NetEase, Inc. (NASDAQ:NTES)
Texas Instruments Inc. (NYSE:TXN)
Logitech International SA
Citrix Systems, Inc. (NASDAQ:CTXS)
Lam Research Corporation (NASDAQ:LRCX)
Applied Materials, Inc. (NASDAQ:AMAT)

Open Position
Marriott International, Inc. (NYSE:MAR)
Home Bancshares, Inc. (Conway, AR) (NASDAQ:HOMB)
JetBlue Airways Corporation (NASDAQ:JBLU)
Masco Corporation (NYSE:MAS)
Cintas Corporation (NASDAQ:CTAS)
VeriSign, Inc. (NASDAQ:VRSN)
InterDigital, Inc. (NASDAQ:IDCC)
Equity LifeStyle Properties, Inc. (NYSE:ELS)

Short Rebalancing Actions
As of the September 30, 2016 close, 7 stocks have left the long-only models, 8 have been added, and 16 are rebalanced. This 23-stock theoretical model assumes an equal 4.35% weight for each stock. This short model is composed of low-quality stocks and only tends to work well during periods of high uncertainty or volatility in the market.

Close Position
Under Armour, Inc. (NYSE:UA)
Deutsche Bank AG (NYSE:DB)
Jacobs Engineering Group Inc. (NYSE:JEC)
Colfax Corporation (NYSE:CFX)
Caterpillar Inc. (NYSE:CAT)
Workday, Inc. (NYSE:WDAY)
PTC Inc. (NASDAQ:PTC)

Hold/Rebalance
Tribune Media Company (NYSE:TRCO)
Wynn Resorts Ltd. (NASDAQ:WYNN)
Melco Crown Entertainment Limited (MPEL)
Netflix, Inc. (NASDAQ:NFLX)
Ctrip.com International Ltd. (NASDAQ:CTRP)
Tesla Motors, Inc. (NASDAQ:TSLA)
Archer-Daniels-Midland Company (NYSE:ADM)
Superior Energy Services, Inc. (NYSE:SPN)
The Blackstone Group L.P. (NYSE:BX)
Credit Suisse Group AG (NYSE:CS)
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
Tesaro, Inc. (NASDAQ:TSRO)
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
Tableau Software, Inc. (NYSE:DATA)
FMC Corp. (NYSE:FMC)
Tableau Software, Inc.

Open Short Sale
Sinclair Broadcast Group, Inc. (NASDAQ:SBGI)
MPLX LP (NYSE:MPLX)
ConocoPhillips (NYSE:COP)
InterOil Corporation (NYSE:IOC)
Terex Corporation (NYSE:TEX)
Joy Global, Inc. (NYSE:JOY)
NXP Semiconductors NV
Freeport-McMoRan Inc. (NYSE:FCX)

Supporting Documents

  1. Monthly-Update-Ascendere-2016-09-30-preliminary.pd...

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in OR SHORT POSITION over the next 72 hours.

Additional disclosure: There are limitations inherent in our theoretical model results, particularly with the fact that such results do not represent actual trading and they may not reflect the impact material economic and market factors might have had on our decision making if we were actually managing client money. Please see additional disclaimers and disclosures at the back of this report.