Navaratnas

Navaratnas Report

Weekly screen — Monday, May 12, 2026

This week's screen of 187 U.S. equities: 1 Navaratnas (9/9), 2 watch (8/9), 2 monitor (7/9). Macro regime: risk-on · VIX 17.08 · 10Y-2Y +0.48

The nine gems — nine of the strongest analytical signals at any given moment. The set is continuously calibrated as new data emerges and as live forward-tracking refines the model; what's in the nine today may differ from what was in it last quarter. The discipline is the constant — a Navaratnas is released only when whichever nine are currently in force all align.

Active positions (3 — 1 flagged for exit)

Names already released, with current state & the action the playbook calls for.

NVDA	released 2026-04-14	day 28	+12.4%	score 8/9	HOLD
COST	released 2026-03-31	day 42	-16.2%	score 6/9	EXIT
COST: stop hit at -15% & score dropped to 6/9. Both triggers fired this week.
TJX	released 2026-03-09	day 64	+8.1%	score 7/9	HOLD

Navaratnas — full alignment (1)

LLY

Healthcare

9 of 9 — full alignment

Entry on the open per playbook.

📰 LLY surges as obesity drug uptake exceeds estimates

Watch — one signal short (2)

MSFT

Technology

8 of 9

Awaiting final alignment.

Financial Services

8 of 9

Awaiting final alignment.

Monitor — building (2)

ROST

Consumer Cyclical

7 of 9

Building toward alignment.

AMAT

Technology

7 of 9

Building toward alignment.

The playbook

Entry — when a Navaratnas fires (9/9), buy at the next market open. Allocate 5–10% of equity capital per pick. Take every Navaratnas that fires; the statistical edge depends on you not cherry-picking.

Hold — minimum 60 days, target 120. Re-evaluate at day 60: if score still ≥ 7/9, ride to 120. Backtest alpha was +3.07% at 60d and +5.17% at 120d — patience compounds.

Exit — sell when any of: (a) score drops to 6/9 or below, (b) hard stop at −15% from entry, (c) 120 days elapsed. The Active positions table above flags HOLD or EXIT against each open name.

Discipline — max 2 positions per sector. Do not average down on losers. Re-entry allowed if a name returns to 9/9 — no memory, no grudges.

Historical win rate at score 7+ in 2024–2026 backtest: 70–78%. Expect roughly 1 in 4 picks to lose money even when followed correctly. Methodology has not yet been stress-tested against a major drawdown regime.

Conflict disclosure. The Navaratnas team holds no positions in LLY, MSFT, V, ROST, or AMAT as of this issue and will not initiate positions in these names within 48 hours of release.

Educational only — not personalized investment advice. Past performance does not guarantee future results. Navaratnas operates as a publisher (Lowe v. SEC, 1985) and does not provide individualized advice or manage subscriber accounts. Consult a licensed advisor before acting on any position.

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