XLY - The trend is your friend -- what worked in November

Studies have shown that one of the best predictors of stock price performance is recent performance. In other words, what worked recently is most likely to keep working. So what worked in November? By Style: In a month loaded with earnings reports, it may not come as a surprise that companies with characteristics of strong earnings quality led -- and by going long names with strong profitability and short those with weaker profitability, the strategy would have yielded a near 2% return. Stocks with strong cash flow characteristics, and those with strong capital efficiency (i.e those with higher ratios of EBITDA to assets) returned more than 6% assuming you were long the highest quality, and short those stocks with worse ratios. Should you anticipate what recently worked to continue to perform, here's an equity screen for stocks with "A" or greater quant rating for growth and profitability with a market

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The trend is your friend -- what worked in November