Exploring Kalkine's Momentum Model Portfolio for Short-Term Gains

We at Kalkine introduced Model Portfolios as a unique opportunity for diverse audiences, offering general advice tailored to individual needs. These portfolios are hypothetical investment tools comprising a selection of stocks—usually 10-15—catering to varying risk tolerance levels and holding tenure expectations. 
 
Kalkine's Momentum Model Portfolio embraces the 'Trend is Your Friend' philosophy, strategically designed to encompass momentum stocks across diverse sectors and market capitalization. This portfolio, rooted in a back-tested quantitative strategy derived from technical indicators, aims to select a suite of 10 stocks favorably poised from a Risk-Reward perspective. The success of any quantitative strategy hinges on its key metrics and defined criteria for selection. Kalkine's Momentum Model Portfolio strategy amalgamates volume, trend-following, and momentum indicators to yield desired outcomes. 

Understanding Kalkine's Momentum Model Portfolio 

Kalkine’s Momentum Model Portfolio offers opportunities to capitalize on short-term (up to 2 months) price movements of stocks exhibiting strength on quantitative parameters. The methodology, meticulously crafted, relies on positive technical indicators signaling a potential directional movement in stock prices. These quantitative parameters are finalized through extensive research and testing by qualified technical analysis experts, ensuring robust evaluation and selection of stocks. 

Unlocking the Potential: What You Get 

• Exposure to Diverse Momentum Stocks: Gain exposure to a diversified pool of small, mid, and large capitalization momentum stocks listed on the ASX. 
• Asset Type: ASX Listed-Equities. 
• Objective: Identify momentum stocks exhibiting relative strength and upside potential in the short-term, typically up to 2 months. 
• Strategy: Implement a technical analysis-driven approach to select momentum stocks for a duration of up to 2 months, catering to individuals with a high-risk appetite. 
• Stock Selection Approach: The model portfolio is meticulously crafted based on a momentum strategy, assessing the short-term risk-reward ratio. Stock selection parameters include Simple Moving Averages (SMAs), Directional Movement Index (DMI), Relative Strength Index (RSI), MACD, and volume trend. 
• Target Audiences: Tailored for individuals with a short-term outlook and high-risk appetite. 

Methodology 

Trending Sector Allocation 

Trending sectors showing strength or poised to lead the market in the short term are strategically allocated within the portfolio. 

Selection Universe 

ASX-listed stocks covering a broad range of market capitalization, including Small, Medium, and Large Caps, form the selection universe. 

Stock Screening 

• Momentum Indicators: MACD, Relative Strength Index (RSI), and Directional Movement Index (DMI) are employed for assessing momentum. 
• Trend-Following Indicator: 50-period and 20-period Simple Moving Averages (SMA) aid in identifying trend direction. 
• Volume: Volume trend analysis is utilized to gauge the strength of price movements. 

Periodic Portfolio Management 

• Monitoring: Regular monitoring is conducted based on achievement of Support or Resistance levels, technical analysis, news, events, and geopolitical impacts. 
• Rebalancing: Portfolio rebalancing occurs in response to any changes in stock allocation. 

Kalkine's Momentum Model Portfolio provides investors with a strategic avenue to capitalize on market momentum, offering exposure to a carefully curated selection of momentum stocks. With its technical analysis-driven approach and focus on short-term potential, this portfolio caters to individuals seeking high-risk, high-reward investment opportunities. 

Unlock the power of market momentum with Kalkine's Momentum Model Portfolio and embark on your journey towards potential short-term gains.