The Q3 Quality Value Screen - and The Morning Preview

If you're new to trading and are trying to make some simple gains along the way, consider this simple strategy.

Good morning:

Welcome to our newest members. I hope this note finds you well. I’ll be live at 8:45 ET this morning with yet another preview of this quarter and what to expect.

We have made it to the third quarter… on the back of yet another violent V-shaped curve. Our momentum equation turned positive on April 23, with another confirmation of improved momentum, as tracked by the MicroSectors FANG 3X Leveraged ETNs, which has evolved into a critical line in the sand for equities.

As a reminder, we focus on the combination of liquidity, momentum, and insider buying. Currently, the first two are quite strong, while insider buying is very weak with the equity markets at all-time highs. While the Fed is providing support (not easing but not extreme tightening), Treasury issuance has been very accommodative.

Today, I want to take a short break from that and give investors a sandbox in which to operate in this environment. If you’re new to trading, nervous about the market, or just want to co…