The Twitter Top 10 portfolio moved up 1.68% over the past week. It is still outpacing the S&P 500 Index (SPX) from the first of the year. The returns have been dampened this month by two big losers. Best Buy (BBY) is down 7.7% and VMware (VMW) is down 7.1%. Strong performance from Ford (F) which is up 9.9% and moderate performance from Yahoo (YHOO), Nike (NKE), and Green Mountain Coffee Roasters (GMCR) which are up between 4% and 6% account for the majority of the portfolio’s gains. A performance chart and details are below. Prices as of the close on 4/26/12. 4/5/2013 $BBY 610 25.45 15524.50 23.5 14335.00 -7.66% $YHOO 482 23.3 11230.60 24.68 11895.76 5.92% $HOT 173 60.14 10404.22 62.09 10741.57 3.24% $NKE 190 58.97 11204.30 61.89 11759.10 4.95% $V 68 165.16 11230.88 167.23 11371.64 1.25% $F 903 12.44 11233.32 13.67 12344.01 9.89% $GMCR 214 53.23 11391.22 55.56 11889.84 4.38% $VMW 146 76.91 11228.86 71.46 10433.16 -7.09% $UPS 130 83.54 10860.20 85.71 11142.30 2.60% $MU 1207 9.31 11237.17
Our Twitter Top 10 Portfolio is down slightly (-.17%) since the first Friday in April. It is slightly under performing the S&P 500 Index (SPX) which is essentially flat on the month. VMware (VMW) and Best Buy (BBY) are the biggest drags on the portfolio, while Ford (F) and Green Mountain Coffee Roasters (GMCR) are helping to provide some lift. So far this month four stocks are down while 6 stocks are up. A performance chart and details for the stocks in the portfolio are below. Start Date Symbol Shares Start Price Start Total End Price End Total % Gain / Loss 4/5/2013 $BBY 610 25.45 15524.50 23.37 14255.70 -8.17% $YHOO 482 23.3 11230.60 23.62 11384.84 1.37% $HOT 173 60.14 10404.22 61.34 10611.82 2.00% $NKE 190 58.97 11204.30 60.67 11527.30 2.88% $V 68 165.16 11230.88 163.9 11145.20 -0.76% $F 903 12.44 11233.32 12.91 11657.73 3.78% $GMCR 214 53.23 11391.22 55.29 11832.06 3.87% $VMW 146 76.91 11228.86 73.4 10716.40 -4.56% $UPS 130 83.54 10860.20 83.13 10806.90 -0.49% $MU 1207 9.31 11237.17
Below are charts of the stocks with the highest bullish intensity on Twitter. We take the top ten from the monthly list on the first Friday of each month to make our Twitter Top 10 Portfolio. On the weekly list we’re seeing consumer staples and health care stocks starting to creep in. If the trend continues it will be just another sign of a rotation to safety. At this point the monthly list still contains a mix of high quality and high flying stocks (as has been the pattern since the first of the year).
Our Twitter Top 10 portfolio has gained 2.9% this week. The S&P 500 Index (SPX) is up 2.1%. Once again the most bullish stocks on Twitter are outperforming the general market. The biggest gainers are Ford (F) , Green Mountain Coffee Roasters (GMCR), and Micron Technologies (MU). All of them are up close to 8% on the week. Yahoo (YHOO) and Starwood Hotels & Resorts (HOT) are up nearly 6%. The stocks with losses since April 5th are Best Buy (BBY) down 5.23% and VMware (VMW) down .79%. A performance chart and details are below. Here’s a post with some background on how the portfolio is created. Please note: Prices are from mid day on Friday 4/12/2013. I’ll use closing prices on the first Friday of every month for “official” tracking purposes. Start Date Symbol Shares Start Price Start Total End Price End Total % Gain / Loss 4/5/2013 $BBY 610 25.45 15524.50 24.12 14713.20 -5.23% $YHOO 482 23.3 11230.60 24.61 11862.02 5.62% $HOT 173 60.14 10404.22 63.8
Every Tuesday I post a list of stocks with the highest bullish intensity in trader’s tweets. The list is comprised of stocks that a lot of people are excited about on Twitter so they have very high bullish sentiment scores. So what happens if you simply buy the most bullish stocks on Twitter? First of all, let me specify that I’m not recommending this as a strategy. This is just an illustration. Since the first of the year I’ve been tracking a mechanical investing strategy that buys the top ten bullish stocks over the past month. I’ll call it the “Twitter Top 10 Portfolio”. The list is created on the first Friday of every month and I use Friday’s closing prices for buying and selling. Now that I’ve got three months of history I thought you might like to see the results. First is a chart of performance comparing the Twitter Top 10 Portfolio against the S&P 500 Index. Below that I’ve listed the stocks it would have owned each
Below are the stocks with the highest intensity (volume and scores) on Twitter for both the past week and past month.
Visa (V) has been consolidating for over a month. During this consolidation its Twitter Sentiment Indicator has shown surprising strength. This strength was validated today with a 2.18% move in the stock. It will be important for sentiment to stay strong if/when Visa breaks out to new highs. We see positive price action as an encouraging sign for the economy. Visa, although categorized in the Business Services industry, it tells us as much about consumers as merchants. Investors and traders like Visa for its growth potential as more merchants install point of sale software and more consumers use debit and credit cards for transactions. We are watching the performance of Visa because any slow down in the stock will signal a potential slow down of the consumer.