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No. of Recommendations: 20
In the recent thread “Retired”, I was asked how I use Marjory’s Overlaps.
My system is not really “Mechanical”, but it is clearly describable, and it has beaten the S&P 500 over the last two years. Here is a link to a chart comparing my results (normalized, so you can only see the relative size) with the S&P:
http://tinyurl.com/ybtxk2ob
As you can see, the system does very well when the market is rising, but hurts when it is falling. I believe that is because the underlying newsletters in Marjory’s system are largely momentum based.
I achieved these results by putting a little more than half of my stock holdings in SPY and QQQ, and the remainder in stocks picked from Marjory’s list. Here is that picking process:
I get Marjory’s spreadsheet each weekend by email, and load the results (overlaps 3 and above) into a spreadsheet. Here it is through last weekend:
http://tinyurl.com/yc3bhyky
I then construct two charts in Yahoo Finance, using the “full screen” chart. The first is a chart starting with SPY over the last month, compared to my other stock holdings. Here is that chart as of today:
https://tinyurl.com/yal5vhzr
You can see that almost all my stock holdings are well above the S&P over the last month. TEAM is the laggard, and is a candidate for replacement when I look at this weekend’s overlaps.
I then construct a chart of the SPY and some number of Marjory’s top overlaps. Here is where the selection process gets slightly subjective. If you put all stocks having overlaps last week down through 10 into a similar chart, you get this:

http://tinyurl.com/n2mjufx
If I were using this chart to pick, I would probably remove CIEN and AVGO.

And if I were using it to pick a replacement for TEAM, I would pick XLNX.

A couple of observations: This system has a lot of turnover. I bought TEAM January 7, this year. If you search through the spreadsheet of Overlaps for a given stock, you will see that they come and go pretty quickly. Not for the trade adverse. The only stock that held on for a very long time was NVDA. Here is a spreadsheet of its scores from August 2015 to today:

http://tinyurl.com/y9qognkb


Reading back over the above, I see that some of my links to the charts of current holds and the most recent week's overlaps do not bring up the correct charts for me. If that happens to you, here are the stocks to put in the charts. Start with SPY and add:

For my holdings: ALRM,CYBR,KL,QQQ,TEAM,VEEV.

For the current overlaps through 10: ALRM,VEEV,XLNX,AVGO,CIEN,CYBR,KL,LULU,NOW,TEAM.

Have fun!
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