Trade Alert For Equity & ETF Models Only – CORRECTION
*** In the initial trade alert I stated we added 1% to XLE. That was incorrect as we initiated a 1% position of the portfolio in XOP. The trade was made correctly in the portfolio.
As we enter into the last week of the quarter, we are adding a smidge of trading exposure to portfolios ahead of the $30 billion portfolio rebalancing required by month-end. With many mutual fund managers underexposed equities, and the markets triggering a short-term MACD buy signal, there is some upside to 3900-4000 on the S&P 500 index.
As such, we are adding 5% equity in two trading index positions and increasing exposure to energy by 1% following the rather brutal sell-off recently. These are opportunistic trades that we will sell on a rally, or as needed to reduce equity exposure later on.
Equity Model
- Buy 2.5% of the portfolio in the Nasdaq 100 Index ETF (QQQ)
- Buy 2.5% of the portfolio into the S&P 500 Equal Weighted Index ETF (RSP)
- Add 1% of the portfolio to build a starter position in Devon Energy (DVN)
ETF Model
- Buy 2.5% of the portfolio in the Nasdaq 100 Index ETF (QQQ)
- Buy 2.5% of the portfolio into the S&P 500 Equal Weighted Index ETF (RSP)
- Add 1% of the portfolio to the SPDR Oil & Gas Exploration ETF (XOP)
