Position Trader

Swing Trading at the next level up

, , ,

US stock market is mixed – Quant stock portfolios have modest gains – Update 09/08/26

  • Quant Weekly – Up over 74% since June 2025
  • Quant 30 – Up over 66% since June 2025
  • Legacy – Up over 320% since April 2023
  • Education – Reverse Stock Splits: Buying Opportunity or Warning Sign?

USA Stock market week ending 09/04/26

  • SPY — SPDR S&P 500 ETF Trust: +0.1% — The broad large-cap market finished essentially flat for the week, with gains earlier in the week offset by Friday’s decline following a stronger-than-expected jobs report.
  • DIA — SPDR Dow Jones Industrial Average ETF Trust: -0.2% — The Dow finished slightly lower as rising Treasury yields and increased expectations for a potential Fed rate hike pressured stocks.
  • ^IXIC — Nasdaq Composite: +0.4% — Technology stocks helped the Nasdaq finish modestly higher despite Friday’s pullback, with semiconductors outperforming while software stocks lagged.
  • IWM — iShares Russell 2000 ETF: +0.0% — Small-cap stocks finished essentially unchanged, reflecting continued sensitivity to interest-rate expectations and economic data.
  • SPMO — Invesco S&P 500 Momentum ETF: +2.0% — Momentum stocks were the week’s strongest group among the listed benchmarks, benefiting from strength in technology and other higher-growth areas.

Market Drivers this Week (09/07/26 – 09/11/26)

  • Mon 9/7: Labor Day — U.S. stock and bond markets closed. No major U.S. economic releases.
  • Tue 9/8: NFIB Small Business Optimism Index (August) at 6:00 AM ET; Consumer Credit (July) at 3:00 PM ET. The data provide a look at small-business sentiment and household borrowing.
  • Wed 9/9: Employer Costs for Employee Compensation (June) at 10:00 AM ET, providing a detailed look at wage and benefit costs.
  • Thu 9/10: PPI (August) at 8:30 AM ET, followed by Existing Home Sales and Wholesale Trade (July) at 10:00 AM ET. The ECB also announces its rate decision, making Thursday a particularly important day for global markets.
  • Fri 9/11: CPI (August) at 8:30 AM ET, along with Real Earnings. CPI is the week’s key U.S. economic release and will be closely watched ahead of the Federal Reserve’s September 15–16 meeting, particularly after recent uncertainty over the path of interest rates.

The CNN Fear and Greed Index ends the week at 42. The 10-week CNN Fear & Greed readings suggest that investor optimism has cooled substantially, leaving the market in a cautious state where sentiment could improve quickly if fundamentals surprise positively—or deteriorate further if expectations are disappointed.

  • 9/4/26 – 42 Fear
  • 8/28/26 – 54 Neutral
  • 8/21/26 – 55 Neutral
  • 8/14/26 – 65 Greed
  • 8/7/26 – 64 Greed
  • 7/31/26 – 42 Fear
  • 7/24/26 – 39 Fear
  • 7/17/26 – 37 Fear
  • 7/10/26 – 49 Neutral
  • 7/3/26 – 32 Fear

The Quant Model Portfolios had a modestly up week with Momentum stocks rallying a little. Quant Weekly increase from 73% to 74% and Quant 30 increased from 63% to 66%. The market remains choppy with interest rates slowly rising and the middle east war unresolved.

Portfolio Changes

Note: You are reading the free subscriber newsletter. Paid subscribers enjoy instant access to weekly Model Portfolio updates upon release. Free subscribers get access to Portfolio updates after a three-week delay. Want timely access to the new Adds/Removes?   Subscribe

Model Portfolio Quant Alpha Weekly

Any newly added stock is being released to Paid Subscribers today. Below are the updates from three weeks ago. This Portfolio continues to significantly outperform its benchmark, 74% versus 25%. It has 28 members.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (08/14/26) : None

Outperformers:  SSRM (SSR Mining) up over +130%, MU (Micron Technology) up over +540%,  TTMI (TTM Technologies) up over +100%, PARR (Par Pacific Holdings) up over +90%

Model Portfolio Quant 30

This week’s new update, if any, is being released to the paid subscribers. Shown below is the update made three weeks ago. This Portfolio continues to beat its benchmark by a wide margin, 66% to 25%. It has 30 members in it.

Top five Quant stocks in the Portfolio (Paid subscribers only).

Add (08/07/26): None

Remove (08/07/26): None

Outperformers:  MU (Micron Technology) up over +730%, LITE (Lumentum Holdings) up over +260%, BTSG (BrightSpring Health) up over +170% and SNDK (Sandisk) up over +180%

Model Portfolio Quant Alpha’s – Legacy

The portfolio is up over +320% since it began in 2023. It has 17 stocks in it. Powell industries is now a 9 bagger. Celestica is now a 12 bagger

Top five Quant stocks in the Portfolio (Paid subscribers only).

Remove (08/07/26): None

Outperformers: AGX (Argan) up over +500%,   STRL (Sterling Infrastructure) up over +700%, POWL (Powell Industries) up over +900%  and CLS (Celestica) is up over +1200%

Model Portfolio Quant Top Stock

This new Portfolio adds one new stock a week. A separate email is sent on Thursday morning detailing the selection, a shallow dive on the pros and cons of the stock and the criteria used for the Portfolio.

Add: WDC (Western Digital) – Computer Hardware 

Portfolio Performance

Performance to 09-04-2026

Top Quant Stocks for this week – (Paid subscribers only feature)

Paid subscribers were presented with a list of the Top Financial EX Banks today

The last time the top 10 Financial EX Banks was revealed was 6/19/26. Since then the 10 stocks were up an average of 5.66%.

Investment Education

Reverse Stock Splits: Buying Opportunity or Warning Sign?

A reverse stock split can make a $2 stock become $20 through a 1-for-10 split, but nothing fundamental changes. If an investor owns 100 shares worth $200 before the split, they would own 10 shares worth about $200 afterward. The company’s business, market value and financial condition remain essentially unchanged.

Why Companies Reverse-Split

  • Avoiding delisting: Companies trading below exchange minimum-price requirements may use a reverse split to regain compliance.
  • Improving marketability: A higher share price can make the stock more accessible to investors and potentially improve trading characteristics.
  • Optimizing the trading range: Research from Nasdaq indicates that appropriately priced reverse splits can improve spreads and liquidity in some cases.

What the Research Suggests

The bigger concern is why the company needs the reverse split in the first place. Academic research generally finds poor subsequent performance among reverse-split stocks: one large study found abnormal returns of -10.76% after one year and -33.90% after three years, while another study of more than 1,600 companies found statistically significant negative abnormal returns over the three years following reverse splits.

That doesn’t mean every reverse split is a bad investment. Nasdaq research has found that some companies experience better liquidity and narrower spreads when the reverse split moves the stock toward an appropriate trading range.

The Bottom Line

I would treat a reverse split as a signal to investigate, not as a buy signal. The split itself doesn’t create value; it simply changes the number of shares and the price per share. If the company is losing money, burning cash, carrying heavy debt or repeatedly needing financing, the reverse split may be a warning sign.

Before buying, I would ignore the new share price and ask the questions that actually matter: Is revenue growing? Is the company generating cash? Is the balance sheet improving? Is management executing a credible turnaround?

A reverse split can change the sticker price overnight, but only a stronger business can change the investment thesis.

Quick Links

All content on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. This post was written with the assistance of artificial intelligence. The original ideas and final review are human-generated. Disclaimer

Copyright 2023-2026 SwingTrader.Trading. All Rights Reserved.

←

Leave a comment