Start Here: How to use the Shield & Sword
Your Guide to Managing Risk and Capturing Momentum
Most investors have no plan for the next market crash.
They hope it won't happen.
They hope they can stomach it.
They hope it recovers quickly.
But hope isn't a strategy.
The Shield & Sword System
We provide two frameworks:
🛡️ The Shield - Know when to reduce risk
⚔️ The Sword - Know where the momentum lives
Step 1: 🛡️The Shield: Your Monthly Red Line Risk Report
The Red Line is simple:
When the S&P 500 is above the Red Line → Trend is positive
When the S&P 500 is below the Red Line → Trend is negative
The Monthly Signal
We only change our signal at month-end close.
Why? To filter out mid-month noise and false alarms.
Positive Signal: Price above the Red Line signals favorable conditions for growth Negative Signal: Price below the Red Line indicates priority on risk management
What you Get:
Paid subscribers receive:
- Current Red Line status (S&P 500 and Nasdaq 100)
- Momentum analysis (is the trend strengthening or weakening?)
- Market breadth (what percentage of stocks are participating?)
- Hypothetical model portfolio guidance
How the signal works:
- Weekly updates show current status
- Official signal comes at month-end close
- Model portfolio changes only at month-end
This reduces false signals while keeping you informed.
FREE: Check out the Shield Signal from January 2026:
Step 2: ⚔️ The Sword: Your Monthly Stock Rankings
Our M5 Momentum Algorithm We rank stocks using three factors:
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 the 5 stocks with the strongest risk-adjusted momentum.
What You Get
Paid subscribers receive:
All 5 ranked stocks with momentum scores
Annotated charts for each position
Why stocks made or missed the list
What we're watching for next month
When momentum breaks, stocks get removed—no emotions, just data.
FREE: Check out the Sword Post from January 2026:
How to Get Started
Try the Full System 7-day free trial.
Read the Shield and Sword posts.
Get a feel for the approach.
See the full Red Line analysis, all 5 Sword stocks, and model portfolio guidance.
Why This Approach?
Most newsletters give you opinions. We give you signals.
The Red Line doesn't care about:
- The Debt Ceiling
- Earnings reports
- Political drama
- Economic forecasts
It just tracks the trend. Simple. Systematic. Historical.
Ready to manage risk?