Today we look back at the IIP industry and see how its doing year to date.
As an industry whole, its ranked 20th YTD and up +25.73% in that same time period. Solid performance from a sturdy industry inside a powerful sector
Here is a chart of the trailing 12 months showing the trend. Since the start of 2017, the SMA50 has acted as strong support.
While this industry has 51 active names, we filter it down to 24 to make the program quicker and cleaner. Our current IIP setup is actually only 23 names as LNKD was acquired. Below is a snapshot of our IIP industry input page.
This industry is up +1.46% in the last month and we don’t see any concern in the averages to think this cant continue higher
Run strength is flat but up vs sector and industry
Rules have improved some along with the techincals
New growth has also doubled from 8 to 16%
On 5/10 we highlighted this industry with the below summary
The top 6 were GRUB, FB, ATHM, GOOGL YY & WB
Since this run the results are as follows
GRUB – (2.95%)
FB – +1.63%
ATHM – +19.63%
GOOGL – +2.55%
YY – +10.43%
WB – +16.00%
If you bought the top 6 (all names >55% overall score) equal weight, you would be +7.88% vs the industry just being over 1%. The QQQ is up +1.5% during this same time period (5/10 – 6/14) to give it some perspective.
Our motto is strength in numbers and that’s a lot of numbers we analyze. You do not need 100 or 500 companies to make an ETF, you need 3-5 really strong ones. This makes managing the portfolio much easier and allows for easy rotation between a few names as they show weakness or as new ones show strength.
Below is the summary from today (6/14/17)
Right away you will notice that WB went from 6th to 1st and its score is now 9bps better than the next (FB). Its also interesting that the JXM 6 names are still the same. ATHM is showing some weakness as the valuation score has dropped to 31% and well under the 41% run average, so we will keep an eye on that.
Here are some current setups
WB – daily chart
You had a base breakout then a gap higher which is now consolidating on lesser volume. When you combine that with its JXM score, one would think the next move from this triangle will be higher.
GRUB – weekly chart
Has a cup and handle feel to it but not exactly textbook. The handle is very long and while it had a lower low, it now has a higher high with that last high on very solid volume. If price can stay over 42-44.50, it just has 47.95 and then who knows. It supports a strong JXM score so we are hoping for more upside.