The Traders Journal

This Hasn't Been More Crucial In The 12 Years Since 2008: ChartPack Update #27 (Q1 / 2020)

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It's a new age. On March 25th, StockCharts TV held a sensational one-hour summit with 13 commentators focused on "Navigating the Bear Market". What came afterwards was equally big news. StockCharts made the commentators' charts available to download directly into your account together as a single ChartPack.

Two important thoughts. First, let me say that all investors should be open to considering how other investors monitor and chart the markets. Having said that, charts are very personal. Secondly, that needs to come with some essential caveats. Resist the urge to clutter your Dashboard with random charts and ChartLists. Remember that everything has to earn a precious slot in your permanent Dashboard. Those slots are attained by these four qualifiers:

  1. Ask yourself if the chart you are considering speaks to your personal investment style.
  2. Install the chart first in your Watchlist. Then test drive it for awhile. Is it useful? Does it earn your shelf space or not?
  3. Where would this chart best fit? Don't just randomly create another ChartList to warehouse this chart.
  4. If the chart does not meet these top three criteria, then you should delete it altogether.


It's been over 10 years since I first began sharing my personal toolkit with the investors who were taking my classes. Shortly after, we created the Tensile Trading ChartPack available to all StockCharts.com subscribers as well. Ever since, Grayson and I have incorporated hundreds of user suggestions and our own personal updates each and every quarter. 

I firmly believe that ours is unlike any ChartPack available, and it's a trifecta of features that makes it so.

  1. It's a comprehensive roadmap of all essential ChartLists organized in a clear intuitive manner.
  2. The ChartPack consists of 99 ChartLists which are all pre-populated with the tickers and descriptions you need. For example, ChartList #105 — The Master ETFs list — is pre-populated with the 166 most popular ETFs. ChartList #450 — the Dow Industry Group — is pre-populated and labelled with all 152 industries and so on.
  3. A great many charts in our pack have descriptive explanations and helpful tips attached in the "ChartList Notes" below each chart. That's a decade's worth of valuable information contributed by a user community numbering in the thousands. 


The bottom line is that you should start with the ChartPack but then make it your own. If you don't trade country funds, ChartList #205 goes to the trash. If you don't follow currencies, ChartList #210 also goes to the trash, and so on. This introduction is longer than I wanted, but hopefully it brings home the imperative that you must be the guardian of your Dashboard.

 Just as you can't successfully trade some one else's canned methodology, you can't embrace a few ChartLists from select gurus. The key is to have a complete full-feature Dashboard of ChartLists with which you're intimately familiar in both bull and bear markets. That is your foundation and anchor. Then consider your fellow investor suggestions and incorporate those charts most appropriate to your personal style. The essential step is to run them through your own filters before they qualify for coveted shelf space in your personal Dashboard.


#400 to #413: Sector ChartLists

I wrote a blog in February 2020 detailing explicitly how to empower your sector analysis and metaphorically speaking, "to put it on steroids". The outperformance is both stunning and very profitable. These sector ChartLists make it super-easy to become a sector prophet (or profit!).

 

#416: Stock Portfolios of Proven Stock Pickers

This new ChartList embraces the same principles we have been employing effectively via our Fidelity Sector Funds and tracking their quarterly buys and sells. This ChartList contains all five large cap funds that have ALL outperformed $SPX (the S&P 500 Index) for the past 2 years, 3 years, 5 years and 10 years. No flash-in-the-pan here. These are the market wizards of stock pickers.

When all five funds own the same stock — pay attention! When all 7 stocks are owned by 4 of these funds — pay attention! When all 5 funds over-allocate by 260% to the Communication Services Sector — pay attention! See the ChartList Notes for many more insights.


#640: Dividend Darlings

This ChartList is now a combination of three dividend strategies:

  • The top dividend mutual funds and ETFs.
  • The dividend yielding stocks found most often in these top funds.
  • The stocks that have raised their dividends consistently for the past 25 years.

This ChartList has 3 top mutual funds, 5 top dividend ETFs, and 23 of the most attractive dividend-yielding stocks. We try hard to make it really easy for our user community! This quarter, we also added Proshares S&P 500 Dividend Aristocrats (NOBL) — an A-rated ETF according to ETF.com. This ETF tracks an equal-weighted collection of S&P constituents that have increased dividend payments annually for over 25 years. It tends to have a Mid-Cap tilt, assets over $6 billion, and average spreads of 0.01%. That is why we felt it added a unique dimension to this ChartList.


#420-12 to #420-90: Fidelity Sector Funds

Let's first dive into the total pool of 43 Sector funds and how they are collectively allocated this quarter.

13% of their allocation is in foreign stocks with the balance in US equities. Remember that the prime objective here is not global diversification. It is USA sector investing.

Relative to the S&P Sector Funds that comprise the S&P 500, Fidelity has over-allocated and emphasized these four. The largest over-allocation is in Basic Materials. Next up are Utilities, with Healthcare and Industrials modestly over-allocated.

I find it insightful that relative to a broader index such as the Wilshire 5000 (total stock market), Fidelity's nearly doubled their allocation in mid-caps and small caps relative to the index. Draw your own conclusions.

Our favorite insights from these exercises is looking at the number of different Sector Funds that own particular stocks, namely:

  • Alphabet (GOOGL) — held by 7 funds. 
  • Visa (V) and Activision (ATVI) — each held by 6 different funds.
  • Fidelity National (FIS) — held by 5 funds.

Microsoft (MSFT), Mastercard (MA), Amazon (AMZN), Verizon (VZ) and T-Mobile (TMUS) — all held by at least 4 different funds.

As you analyze the many adjustments this quarter (i.e.buys and sells) within these Sector Funds, remember the following:

– Historically, the market's next big winners show up first in these Sector Funds.

– Take note of the size of the investment in a particular stock. The bigger the position, the weightier their commitment.

– Don't ignore what they are liquidating (selling).

– Rank the performance of all 43 funds. It's an easy "click" to sort by whatever period you choose. This always yields wonderful insights.

– Dig deeper into holdings of top performing Sector Funds.


Finally, with so much happening in the markets as we've shifted from historic bull run to rapid bear market, here are a few specific Fidelity funds with moves that caught our attention:

  • The Computers portfolio (#420-26) dropped a classic FAANG name in favor of another mega-cap tech stock.
  • The Energy portfolio (#420-40) took major stakes in BP and Cheniere.
  • Lots of movement in the Gold portfolio (#420-46).
  • The Wireless portfolio (#420-90) saw some big shakeups and interesting additions this past quarter.



Already have the ChartPack? Here's how to upgrade:

  1. Log in to your account, then visit the "Manage ChartPacks" page (accessible from the bottom of the Members Dashboard or from the "Your Account" page).
  2. In the table that appears, find the entry for the "Tensile Trading ChartPack" (if you don't see the Tensile Trading ChartPack listed, that means that you haven't purchased it. Click Here to do so now).
  3. Click the "Re-Install" button next to the Tensile Trading ChartPack to start the update process

The download should take about 15 seconds, after which you can explore the new ChartLists and other updates!

New to the ChartPack? Here's how to install it:

If you'd like to add the Tensile Trading ChartPack to your StockCharts account, Click Here.


 

Trade well; trade with discipline!

Gatis Roze, MBA, CMT

Grayson Roze, VP of Operations, StockCharts.com

StockMarketMastery.com

Co-Authors, Tensile Trading: The 10 Essential Stages of Stock Market Mastery (Wiley, 2016)

Co-Presenters, How To Master Your Asset Allocation Profile

Gatis Roze
About the author: , MBA, CMT, is a veteran full-time stock market investor who has traded his own account since 1989 unburdened by the distraction of clients. He holds an MBA from the Stanford Graduate School of Business, is a past president of the Technical Securities Analysts Association (TSAA), and is a Chartered Market Technician (CMT). After several successful entrepreneurial business ventures, Gatis retired in his early 40s to focus on investing in the financial markets. With consistent success as a stock market trader, he began teaching investments at the post-college level in 2000 and continues to do so today. Learn More
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