Trade Alert For Equity & ETF Models
As noted in the Market Sector Buy/Sell Review this morning, there are several areas of the market breaking key supports, along with the S&P index taking out support and triggering a MACD sell signal. While we have been raising cash and hedging risk over the last two weeks, we are taking further actions to cut exposure heading into the Fed meeting on Wednesday and options expiration on Friday.
Note: We added to the S&P 500 Short (SH) today but may take it back off at the end of the day if markets finish near lows. With the market down nearly 10% in 3-days, a bounce to add it to portfolios is likely.
Equity Model
- Selling 100% of AMD (AMD), Nvidia (NVDA), Ford (F), and Goldman Sachs (GS)
- Selling 100% of IEF to prepare for adding to TLT to lengthen bond duration.
- Increase S&P 500 Short (SH) to 5% of the portfolio.
ETF Model
- Reducing SPDR Financials ETF (XLF) from 3% to 1%
- Cutting SPDR Real Estate ETF (XLRE) from 2.5% to 1.5%
- Reducing SPDR Technology ETF (XLK) from 8% to 6%.
- Selling down SPDR Healthcare ETF (XLV) from 9% to 8%.
- Selling 100% of IEF to prepare for adding to TLT to lengthen bond duration.
- Increasing S&P 500 Short (SH) to 5% of the portfolio.
