DWA Sector Stock Model Change

Using Friday's market action, the DWA Sector Stock Model STOCKMODEL underwent its third change of the month today. LGI Homes, Inc LGIH fell below the sell threshold in the BUILTA matrix and therefore was removed from the Model. In its place, Granite Construction Inc. GVA was purchased as it meets all of the buy criteria. With the addition of GVA, the DWA Sector Stock Model now has five positions from the Aerospace, Building, Restaurants, and Internet sectors, for a total of 20 holdings. See the table below for current Model holdings and weights.

With GVA in the forefront of our minds, we wanted to briefly discuss some of the technical merits of Granite Construction Inc GVA. Overall, GVA is a strong 5 for 5’er that has given three consecutive buy signals and has been trading in a positive trend since November 2015. After reaching new 52 week high at $62 in November, the stock exhaled slightly, pulling back to $59. This recent pullback offers a good entry point for those following the DWA Sector Stock Model STOCKMODEL.