Trade Alert For Equity And ETF Models
This morning we reduced exposure slightly by selling 1% of Ford (F) and 0.5% of XLB and LIT in portfolios. Ford is up almost 5% this morning on plans to split the company between electric and traditional. However, with the economy slowing, semiconductors still in short supply, and the Fed reducing monetary support, there is a risk to Ford’s earnings later this year. We also reduced basic materials in advance of a slower economic environment as well.
From a trading perspective, we recently added to our bond holdings (TLT) at lower levels and the sharp rally over the last couple of days pushed yields into resistance. We are taking profits in the 2% of TLT we recently added but are holding the balance for a slower economic environment later this year.
Equity Model
- Reduce Ford (F) from 3% of the portfolio to 2%.
- Reduce TLT from 10% to 8% of the portfolio.
ETF Model
- Reduce SPDR Basic Materials (XLB) and the Global X Lithium (LIT) by 0.5% each.
- Reduce TLT from 10% to 8% of the portfolio.
