$MAS Hits Price Target
This is an update to our model portfolio report, 23 Stocks for November 2016.
Masimo Corporation (MASI) hit a price target in our theoretical long model portfolio yesterday and was assumed closed and replaced with cash at the end of the close today.
For the month to date, 5 out of 23 stocks in the theoretical Core Long Model portfolio have hit price targets this month while 14 out of 27 stocks in the theoretical Core Short Model portfolio have been stopped out with only 1 hitting a short sale price target.
The theoretical Core Long/Short Model is down -1.42% for the month, with a significant gain in the long model being more than offset than losses in the short model (+5.51% -6.93% = -1.42%).
The theoretical Opportunistic Long/Short Model is up 0.48%, benefiting from a 100% cash allocation in the short model that was put in place at the November 11 close as well as a favorable 70%/30% stocks/cash weighting in the long model for the first 3 days of the month (+6.03% -5.55% = +0.48%).
In contrast, the S&P 500 is only up +2.87% MTD.
Both the Core and Opportunistic models use the same basket of stocks, but the Opportunistic additionally incorporate asset allocation rules that applies portfolio-wide weights between stocks and cash.
Stocks in our models are continuing to rise in anticipation of a pro-business actions from President-elect Trump. The prices of steel stocks, like U.S. Steel (X), may be getting an extra boost given their previously depressed stock prices, and because Dan DiMicco, former CEO of Nucor (NUE), was recently put in charge of Donald Trump’s transition team at the Office of the U.S. Trade.