Stock Portfolio

The Chartist takes a purely technical view towards the market. Our analysis is based on the price action of individual stocks in conjunction with many widely followed technical indicators.

write_upsOur decisions are not based upon fundamental information or the type of general Economic conditions often featured in the financial press. In its simplest form, the Chartist strategy consists of two primary factors-relative strength combined with proprietary momentum models. Our momentum models tell us when to buy and our relative strength methodology tell us which stocks to buy.

First we utilize our proprietary market momentum models to determine the overall trend of the market. Second, when our momentum models turn positive we then take positions in a group of high relative strength stocks. What is meant by relative strength? Relative strength is a technical methodology that measures the price action of a given stock in comparison to all other stocks. In every bull market a select group of stronger than market stocks (high relative strength) will invariably emerge as the leaders and outperform the averages by a wide margin.

This methodology is often very difficult for most investors to employ because it calls for purchasing stocks after they have made big price gains. The average investor finds this excruciatingly difficult to do. After all it is contradictory to market lore which is to buy cheap and sell dear.

This premise certainly seems logical enough but what many investors overlook is the fact that a depressed stock is weak for a reason and can remain that way for a very long period of time. In contrast, a strong stock has already demonstrated its ability to score big price gains. A stock’s ability to make substantial headway versus the rest of the market is one of the telltale signs of its potential to be among the big winners of a bullish cycle.

Risk management is just as important as stock selection and neither will be very successful if used alone. Together they comprise a powerful investment tool.

Like every investment strategy they won’t work all the time, but they offer the best opportunity that we have seen for making money in stocks. Ideally, they will tend to get you in the best stocks when the market is positive, and out of them when the market begins to falter. Market timing is the tool that must be used in conjunction with stock selection as a barometer to alert you to changing market climates. Even a stock with good relative strength may fall less than others in a bad market, but it will nevertheless fall. If its strength remains favorable it will probably be among the first to recover to higher prices, but even strong stocks will go down if the overall trend of the market is in a protracted decline.

So why fight a bad market? Take your money out of stocks and wait out the storm in the safety of Treasury bills or market funds. A lengthy bear market. can easily wipe out all gains accumulated during bullish periods. By taking advantage of a timing indicator you can bank your profits when the going gets rough and return when the atmosphere improves.

We want our portfolio to be like a reed in the wind, one that bends but never breaks. Our motto of “take care of your losers and the winners will take care of themselves” has rung true time and time again over the past 42 years.


The minimum required to open an account is $100,000.

As compensation for its service, Advisor is paid a Quarterly Management Fee in advance based on the size of Client’s account under management. If the client or family members open additional accounts our billing rate is based on the total assets of all the accounts.

[table caption=”Our fee schedule is a follows:” width=”500″ colwidth=”100|50|100″ colalign=”left|right|center”]
Above $1,000,000~0.65%