Oliver Kell: Strength on Down Day

Buys from Oliver Kell’s screen for weak market days: liquid, volatile shares that close the day higher — price above 20 dollars, more than 500,000 shares traded on an average day over the last 50 trading days, and a beta above 1, meaning the share swings harder than the market as a whole. Kell uses the list on days when the market is down 1 to 2 percent: a share that closes green then is holding up better than the market. On strong market days the list is naturally long and says little. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. The check and any new purchase happen every trading day; a position is sold as soon as the price falls 15 percent below its highest level since purchase, the share drops off the list, or it is no longer rated green. If the list holds no green-rated share, the portfolio stays in cash.

This portfolio buys shares.