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💡 Why Momentum Matters

Our M5 algorithm identifies stocks with institutional-quality momentum characteristics.

Not hot tips. Not hunches. Systematic rankings based on:

• Absolute Momentum - Multi-timeframe price analysis

• Risk-Adjustment - Incorporates T-Bill rates and volatility

• Quality Filtering - Market cap and institutional liquidity

The result? A monthly ranked list of stocks showing the strongest risk-adjusted momentum.

📊 February's Rankings

This month's top 6 includes:

1. A tech giant that slid after blowout earnings (buying opportunity?)

2. A memory chip maker benefiting from the shortage

3. A healthcare stock trading like an AI stock

One previous favorite got removed—momentum failed, algorithm kicked it out.

In this month's update, paid subscribers get:

• All 6 ranked stocks with momentum scores

• Annotated charts for each position

• Why stocks made or missed the list

• What we're watching for March

The algorithm does the work. You get the rankings.

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Here’s the Top Six

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For a full archive of past signals and rankings, click below

⚔️ The Sword Process

How can you take advantage of momentum in positive markets?

Our process includes:

• Momentum Stock Rankings: Monthly algorithm-driven selection of 5 top stocks with the highest relative strength.

• Hypothetical Model Portfolio: Hypothetical trend-based model illustrating how signals could be applied.

The Momentum Algorithm: Our Three Step Process

• 1. Absolute Momentum: Analysis of U.S. large-cap stocks using multi-time frame price momentum to identify established uptrends.

• 2. Risk-Adjustment: Adjustment for risk, incorporating T-Bill rates (risk-free) and volatility (standard deviation).

• 3. Quality-Adjustment: Standardizes the data to create an apples-to-apples comparison and filtered for market cap to ensure liquidity and institutional quality.

The 5 stocks with the highest final momentum scores form the core rankings input to the Sword Process.

⚔️ Momentum Stock Weekly Update

Five SIX names are currently represented in our Momentum Stock Rankings.

February Signal Recap:

• 2 New Entries: The algorithm triggered two hot new leadership companies for February contributing to the AI space.

• 4 Keepers: Maintained leadership status - includes 1 healthcare company that continues to take off.

• 1 Exit: The algorithm removed a tech giant (a previous favorite) due to failed momentum.

Here’s the Top five Six

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To read our full disclaimer, click here

For a full archive of past signals and rankings, click below

⚔️ The Sword Process

With the current Shield signal positive (price above the Red Line), the paid Sword Process activates—providing the systematic research framework to capitalize on momentum in offensive regimes.

This integrated process includes:

• Momentum Rankings: Monthly algorithm-driven selection of leaders.

• Hypothetical Model Portfolio: Hypothetical trend-based model illustrating how signals could be applied.

• Roundtable Video (Upcoming): Monthly executive briefing for deeper conceptual insights.

The Momentum Algorithm: Our Three Step Process

• 1. Absolute Momentum: Analysis of U.S. large-cap stocks using 6- and 12-month price momentum to identify established uptrends.

• 2. Risk-Adjustment: Adjustment for risk, incorporating T-Bill rates (risk-free) and volatility (standard deviation).

• 3. Quality-Adjustment: Standardizes the data to create an apples-to-apples comparison and filtered for market cap to ensure liquidity and institutional quality.

The stocks with the highest final momentum scores form the core rankings input to the Sword Process.

⚔️ THE NEW February Rankings

These five SIX names represent the current Sword Rankings.

• 2 New Entries: The algorithm triggered two new leadership signals.

• 1 Exit: Former leader removed due to fading momentum.

• 4 Keepers: Maintained status.

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Hypothetical Model Portfolio Integration

This model is purely conceptual and educational—illustrating potential application of the Sword Process in a positive regime (not actual trading or advice).

Example Allocation Framework:

This model and Sword Ranking is for illustrative purposes only. Not financial advice. See full disclosures.

1. Google (GOOG)

Rank: #1 Sector: Technology / Communications

Notes: Google has been a clear leader in the past few months. A series of higher highs and higher lows, proving a strong technical uptrend. Google reports earnings this coming week. If the trend is any indicator of things to come, we are looking for a positive report to coincide with this trend.

2. Micron (MU)

Rank: #2 Sector: Semiconductors / Memory

Notes: Memory stocks have been dominating this market - as is reflected in our rankings with the addition of and .

3. Johnson & Johnson

Rank: #3 Sector: Healthcare

Notes: trading like a growth stock. Series of higher highs → pullback of higher lows. We’ve reached the top of the green envelope this week, may see a pullback down to the 21-day EMA as we’ve seen in the past.

4. Lam Research (LRCX)

Rank: #4 Sector: Semiconductors / Memory

Notes: Lam, like Micron, looks like a bullet train. Volatile, but a bullet train.

T5. Eli Lilly (LLY)

Rank: #5 Sector: Healthcare

Notes: Lilly consolidating within a range. Holding $1,000 support, looks like it could be primed to break through $1,100 resistance to resume the uptrend. Earnings report coming up this week, keep an eye out.

T5. Apple (AAPL)

Rank: #5 Sector: Technology

Notes: Apple just barely missed the cut for the top 5 by month end. However, Today’s breakout would have kept it in the #1 spot, so, we are keeping it in tied at the #5 spot. Because This. Looks. Good.

See you next week for the Shield Report update.

Disclosures

Momentum Wealth Research LLC (“The Publisher”) is an independent publisher of financial information. The content provided herein, including the “Sword Rankings,” “Shield Report,” and hypothetical model portfolios, is for educational and informational purposes only. Momentum Wealth Research LLC and Momentum Wealth Planning, LLC (“The RIA”) are separate legal entities.

Your subscription does not create a fiduciary, client, or professional relationship with The Publisher or The RIA. All investment strategies, including the “Shield & Sword” system, involve a significant risk of loss. Past performance is no guarantee of future results. Model portfolios are purely conceptual and do not represent the performance of actual trading activity. Readers are encouraged to independently evaluate all investments and consult with a professional advisor before taking action.

Please see our full Terms of Service & Privacy Policy

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To read our full disclaimer, click here

“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.” - Mark Twain

The Top 10% Reality

Diversification is the only ‘free lunch’, right?…

A landmark study by J.P. Morgan Asset Management seems to say differently:

• The 66% Drag: Two-thirds (66%) of all stocks in the Russell 3000 between 1980 and 2021 actually delivered negative relative returns compared to the index.

• The Absolute Failure: Over 40% of individual stocks experienced negative absolute returns over that same period—meaning they simply lost money.

• The 10% Solution: The majority of net wealth creation in the market is driven by a tiny minority (~10%) of “megawinners.”

The Sword is our systematic filter designed in attempt to find these ‘Megawinners’. Each month, our algorithm analyzes the market for the top five names exhibiting the highest relative strength and institutional quality. When The Shield is Green, we focus here to capture the "Momentum Factor".

⚔️ January Intra-Month Review

• The Strategy: The next Sword Ranking release (February 2), our Sword Algorithm will trigger a rebalance in attempt capture top tier momentum.

  • The Leaders: Three of our current M5 rankings have continued strong momentum from (as of now) and are likely to remain in the top 5 for February.

  • The Laggards: Two names have been flagged by the system for a potential exit on February 1. Time will tell.

⚔️ The Top 5 Leaders (January)

These five names represent the current Sword Rankings.

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Concentration vs. Dilution

If you own a plethora of broad index funds, you own 500 to 3,000 stocks. While that provides ‘diversification’, history proves that a narrow decile of leadership drives the vast majority of market returns—the remaining thousands tend to simply underperform the index as a whole.

The Sword is our research tool designed in attempt to identify this leadership. Each month, our M5 Algorithm filters the market to find five names exhibiting the highest relative strength, overlayed by quality. When the Shield is Green (Above the Red Line), our model focuses on these leaders in attempt to capture the “Momentum Factor”.

⚔️ January | Executive Summary

• The Theme: “Sector Rotation.”

• The Signal: The M5 Algorithm has identified a clear rotation for January. We are seeing continued leadership in Mega-Cap Tech paired with a constructive rotation into Healthcare.

⚔️ The Top 5 Leaders (January)

These five names represent the current Sword Rankings

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If you own a plethora of broad index funds, you own 500 - 3,000 stocks. The problem? History proves that a handful of leaders do the heavy lifting while the remainder dilute your results.

The Sword is our research tool for identifying the leadership—the five stocks currently exhibiting the highest relative strength and leadership in our research model on a monthly basis. When the Shield is Green, our model identifies these five market leaders to capture the “Momentum Factor.”

⚔️ January Battle Plan: Executive Summary

• The Theme: “Sector Rotation.”

• The Signal: The M5 Algorithm has identified a clear rotation for January. We are seeing continued leadership in Mega-Cap Tech paired with a constructive rotation into Healthcare.

• Model Updates:

  • In: None.

  • Out: J.P. Morgan (Previously T5).

• Commentary: Professionals don’t look for action; they look for trends. Our current model signals that the strongest move is to maintain our current leadership positions and allow the momentum to work.

⚔️ The Top 5 Leaders (January)

These five names represent the current Sword Rankings

Get 7 day free trial

Read more

For a full archive of past signals and rankings, click below

⚔️ The Sword Process

With the current Shield signal positive (price above the Red Line), the paid Sword Process activates—providing the systematic research framework to capitalize on momentum in offensive regimes.

This integrated process includes:

• Momentum Rankings: Monthly algorithm-driven selection of leaders.

• Hypothetical Model Portfolio: Hypothetical trend-based model illustrating how signals could be applied.

• Roundtable Video (Upcoming): Monthly executive briefing for deeper conceptual insights.

The Momentum Algorithm: Our Three Step Process

• 1. Absolute Momentum: Analysis of U.S. large-cap stocks using 6- and 12-month price momentum to identify established uptrends.

• 2. Risk-Adjustment: Adjustment for efficiency, incorporating T-Bill rates (risk-free) and volatility (standard deviation).

• 3. Quality-Adjustment: Standardization into Z-Scores, filtered for market cap to ensure liquidity and institutional quality.

The stocks with the highest final momentum scores form the core rankings input to the Sword Process.

Get 7 day free trial

⚔️ The NEW Top 5 Leaders (January)

These five names represent the current Sword Rankings

Get 7 day free trial

Hypothetical Model Portfolio Integration

This model is purely conceptual and educational—illustrating potential application of the Sword Process in a positive regime (not actual trading or advice).

Example Allocation Framework:

This model and Sword Ranking is for illustrative purposes only. Not financial advice. See full disclosures.

1. Apple (AAPL)

Rank: #1 Sector: Technology

The Setup: Apple reclaims the #1 spot this month. After hitting highs in early December, is in a healthy, constructive pullback. This “bull flag” consolidation often precedes the next leg higher.

Technical View: The trend remains bullish in within a short-term consolidation period. We are watching for a break above $275, which would clear the downtrend line and confirm a resumption of the primary trend.

2. Google (GOOG)

Rank: #2 Sector: Communication Services

The Setup: Google is exhibiting classic “stair-step” momentum. It broke out, pulled back to test previous resistance (now support), and is breaking out again.

Technical View: The stock retains a positive 8/21-day Moving Average cross—our key signal for short-term momentum strength.

3. Broadcom (AVGO)

Rank: #3 Sector: Semiconductors

The Setup: Broadcom has been a market leader for 3 years, and while momentum has cooled slightly relative to its peers, the structure remains intact.

Technical View: As other Semi-Conductor stars like Micron and Lam Research break out, is holding key support levels and attempting to rally despite recent volatility. We view this deceleration not as weakness, but as a “pause that refreshes.”

4. Eli Lilly (LLY)

Rank: #4 Sector: Healthcare

The Setup: The Healthcare Sector is waking up, and is the general leading the charge. The stock held support beautifully during the recent volatility and is breaking out again.

Technical View: This is a high-quality trend. The breakout late in the month signals that institutional money is rotating back into the “GLP-1” trade.

5. Johnson & Johnson (JNJ)

Rank: #5 Sector: Healthcare

The Setup: is the epitome of a “textbook” uptrend right now. It is grinding higher with low volatility—exactly what we like to see for the “Quality” factor of our M5 model.

Technical View: JNJ rallied to the upper envelope and found support immediately at the 21-day Moving Average, seemingly primed for the next leg up.

See you next week for the Momentum Signal update.

Disclosures

Momentum Wealth Research LLC (“The Publisher”) is an independent publisher of financial information. The content provided herein, including the “Sword Rankings,” “Shield Report,” and hypothetical model portfolios, is for educational and informational purposes only. Momentum Wealth Research LLC and Momentum Wealth Planning, LLC (“The RIA”) are separate legal entities.

Your subscription does not create a fiduciary, client, or professional relationship with The Publisher or The RIA. All investment strategies, including the “Shield & Sword” system, involve a significant risk of loss. Past performance is no guarantee of future results. Model portfolios are purely conceptual and do not represent the performance of actual trading activity. Readers are encouraged to independently evaluate all investments and consult with a professional advisor before taking action.

Please see our full Terms of Service & Privacy Policy

Terms of Service | Privacy Policy

Our M5 Algorithm screens the large-cap universe to identify stocks displaying superior Relative Strength compared to the broad index. For January, the model has identified a clear “Barbell” theme: Mega-Cap Tech remains strong, paired with a constructive rotation into Healthcare.

We are sharing our “Bonus Radar” pick for free below. To see the full Top 5 List used in our model, enter your email to unlock the rest of this report.

🔓 Free Preview: J.P. Morgan (JPM)

Status: Bonus Radar / Honorable Mention Sector: Financials

The Setup: We are monitoring the Financials closely. JPM is clearing the $315-$320 price level, which previously acted as resistance. From a technical perspective, a sustained close above this level is often viewed as a constructive signal for the banking sector.

Model View: The M5 model views this as a high-momentum setup as long as price holds above the breakout level.

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M5’s Purpose

Momentum isn’t just about chasing winners—it’s about knowing when the ride is over.

We cut through the noise of endless hot tips to deliver clear, data-driven M5 Power Rankings: the top 5 stocks building real momentum right now, and signals when that momentum starts to fade.

Simple, timely insights so you can decide with data.

About M5

The M-5 algorithm evaluates a population of approximately 575 large- and mid-cap stocks. It calculates price momentum over multiple time frames, adjusts for risk using a risk-free rate and each stock’s standard deviation, assigns momentum values, applies market cap tilting, and ranks them to select the top 5 for the monthly M5 Power Rankings.

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