This is a Guest Post by AK of Fallible

AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops and is the host of Fallible.

The first stock is Tesla (TSLA). It currently has the highest momentum rating in the Nasdaq 100 index.

I use a system called that Nasdaq Allstars that automatically ranks every stock in the Nasdaq 100 by its momentum. And then once a month it rotates into the top 5 highest momentum names, so you’re always in the winners.

Tesla is at the top of that momentum list right now with a TSI ranking of 19, which is much higher than the number 2 stock, Workday at 15. And TSI stands for trend strength indicator — which is how we rank momentum — the higher the number, better the momentum.

Tesla has actually been high on this list for a while. My system told me to rotate into it back in November and I’m now up over 10% since then.

What I really like about Tesla is how it’s one of the few stocks that seems to move on its own, independent of how the broader index moves. Since Oct. 23rd, TSLA is up almost 40% while the Nasdaq is down almost 7% — a pretty big difference. And normally when you’re trading momentum, your positions move with the market, but at an accelerated pace, on the up and downside. But you have stops on the downside, so long-term you make a lot more than the index.

In a market like this you expect to get chopped up, with stocks not going anywhere, which as you can see from my returns, that’s pretty much the case recently, but not for Tesla!

To learn more, make sure you watch the video above!

And as always, stay Fallible out there investors!

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***All content, opinions, and commentary by Fallible is intended for general information and educational purposes only, NOT INVESTMENT ADVICE.