During our weekly management of our simulated ETF portfolio, we discovered that Ireland has weakened enough to demand we liquidate our entire position. It looks as if the weakness will be short-lived, but we must follow our rules. In the end we added more U.S. to our country level one holdings, three different country two names and, believe it or not a Macro ETF. Watch todays video to see how we use Chaikin Analytics to manage our simulated portfolio and which international ETFs we added this week.
Relative Strength WEdnesday
This weeks edition of Relative Strength Wednesday once again showed the markets breadth is narrow. More narrow than last week, infact. Financials take a breather as the bond market rallies, its all tech all the time. XLK and XLC, which is largely comprised on FB & GOOG lead this weeks analysis. You'll see that on a Relative Strength performance basis, only tech and XLC are outperforming the SPY on all three measured time frames.
Watch todays video to see how we use Chaikin Analytics to help spot and follow relative strength trends.
Our weekly look at the Macros behind the market revealed little new information. The breadth of the market remains fairly narrow, three S&P sectors are doing the work. XLK, XLV, XLF remain the strongest from a fundamental view. However, we are beginning to see signs of money rotating out of financials, perhaps setting up for a run in the bond market and utilities. We are also watching dollar strength and it's affect on commodities.
After our robust look at Marco forces, we turned to the Chaikin Screener to look for opportunities. Ultimately, earnings proximity keeps us out of most trades, but we did find a favorable entry in an IT services. Watch todays video for our complete Macro Monday review and screener results.
ETF THURSDAY & Friday
Part 1 (Thursday meeeting)
part 2 (coming soon)
Our simulated ETF portfolio had a netliq of $513K( paper money) at the start of our Thursday meeting. Into our 15th month managing this portfolio, and finally starting to show gains.
This week we managed the U.S. side of the portfolio. We did encounter forced liquidations ( which you will see in part 1 ) We were forced to fully liduitate KRE and KBE on a six month RS trend break. We're fairly certain the trend will recover but you have to stick to your rules! We also liquidated half of our position in XHB as 3 months returns fell below our benchmark, the ACWI.
Lastly, in our part 2 video, we manage the delta neutral portion if this portfolio. We were able to take 1 strangle off the board for slightly better than a wash and add a new Feb position. We also were forced to manage two other strangers which the call side has been challenged. Watch part 2 if you'd like to see how we manage out delta neutral strategy.
relative strength wednesday
Despite the overnight headlines, the market opened up. Our Relative Strength Wednesday shows Healthcare, Financials and Tech continue to be out front. Following our in depth Relative Strength analysis we fired up the Chaikin Analytics Screener tool. We show you how we use the screener to find bullish and bearish trades. Spoiler alert, earnings are beginning to be a problem for initiating new trades.
As we kick off the first real week of 2020, our Macro Monday analysis has yet to show any substantial changes. Our Sector Trend continues to so strength in healthcare, financials and tech, although slowing just a tad from a powerbar ratio standpoint. Our Macro-Relative Strength chart is providing a little more insight on recent market events, as oil and emerging markets show the strongest relative strength vs the SPY. While Large and small caps show weakness and commodities hang in the top half.
Mike debuted a new Relative Strength trend tracker. Much more robust than what we have been doing. This new tool not only trends RS rank over multiple time-frames it also shows us money flow on multiple time-frames along the direction of multiple trend time-frames and associated IV rank. This could prove to be quite a handy tool. Here's a look at the top 10 this week. Watch todays video for our complete Macro-Monday analysis and to see how we use Chaikin Analytics to assist in forming our macro opinion.
Relative strength wednesday
Our first trading meeting of 2020. New year, new decade, other than that not much has changed, at least with the market and our relative strength wednesday analysis. Tch, Healthcare and Financials extend their multi-month stay at the the top of the relative strength comparison. Although, it's worth mentioning financials showing just a little bit of weakness and bonds lok likely to bounce. Watch todays video for our complete Relative Strength Wednesday analysis, a great way to kick off 2020! Happy New Year and Happy Trading!
Macro- Monday has revealed little new information. The market is poised to end the year on a very bullish note, wrapping up a monster year. What will 2020 bring? That's the question. We turn to the Chaikin Analytics platform for an edge in seeing established and emerging trends. The trend we are currently watching is in the early stages, should it continue to develop. That trend is the rise in commodities, as noted below aspart of our RS analysis. We are also watching dollar weakness, which is correlated to the rise in commodities. Watch todays video for our complete Macr0_monday analysis, and a demonstration of how we use the Chaikin screener to search for both Bullish and Bearish trades.