Jordan Kahn: How To Find Leading Stocks Using High-Volume Breakouts

TL;DR

Jordan Khan, President and CIO of ACM Funds, shares insights on the current market, risk management, and his trading strategies.

Transcript

okay hello everybody and welcome to investing with ibd sponsored by interactive brokers i'm alyssa cora multimedia content editor at ibd and joining me today is my co-host justin nielsen ibd market research director and our special guest this week is jordan khan he's president and cio of acm funds welcome jordan well hi thank you thanks for having ... Read More

Key Insights

• 🖐️ Rotation plays in the market have influenced sector performance, with value stocks benefiting recently.
• 🍝 Comparisons to past market cycles provide some insights for decision-making, but it is important to consider current market conditions.
• 🧘 Risk management, including position sizing, sector diversification, and hedging strategies, is crucial for long-term success in investing.
• 🔊 High-volume breakouts and fundamental analysis are key components of ACM Funds' stock selection process.

Questions & Answers

Q: How has the recent rotation play affected the market, and is it likely to continue?

The rotation play has benefited value stocks, but the correction in the Nasdaq suggests that growth stocks may regain their leadership. The market is likely to continue a stair-step pattern with periodic pullbacks and advances.

Q: What are some similarities between the current market and market cycles in the past?

The rotation from growth to value in late 2016 is similar to the current market. However, due to the strong economic reopening, value plays may have more potential for further gains this time.

Q: What are the key factors to consider when selecting stocks for your portfolio?

ACM Funds focuses on high-volume breakouts and conducts a deeper analysis of fundamentals, including balance sheet strength, revenue and EPS growth, earning stability, and valuation. They aim to find quality leaders with good earning potential.

Q: How do you manage risk in your portfolio?

ACM Funds uses a hedge model and adjusts exposure based on market trends. They hedge using index ETFs and put options, aiming to minimize downside risk and protect capital during market downturns. Position sizing and sector diversification are also part of their risk management strategy.

Summary & Key Takeaways

• Jordan Khan discusses the rotation plays in the market and the recent correction in the Nasdaq, suggesting that the rotation play is not over and a balanced market is likely to continue.

• He looks at past market cycles, particularly the rotation from growth to value in late 2016, and finds similarities with the current market, indicating the potential for value plays to continue performing well.

• Khan shares his trading strategies, which are based on the CAN SLIM approach, focusing on high-volume breakouts and conducting a deeper dive into the fundamentals of selected stocks.

• He emphasizes the importance of risk management, sharing personal experiences from previous market downturns and the strategies his firm uses, such as position sizing, sector concentrations, and hedging using options.