Trades in Undiscovered Portfolio
As market conditions continue to shift, with large-cap U.S. stocks resuming an uptrend in the past two weeks, we are once again making some changes within the tactical Undiscovered Portfolio.
Today, I’m selling two positions and buying two more.
Below are this week’s trades within the Undiscovered Portfolio only:
- Sell the 30% allocation of the SSGA US Small Cap Low Volatility Index ETF (SMLV) and replace it with a 30% allocation into the VanEck Morningstar International Moat ETF (MOTI).
- Sell the 10% allocation of the Short MSCI EAFE (EFZ) and replace it with a 10% allocation into the Invesco S&P SmallCap Energy ETF (PSCE).
We are selling the SSGA US Small Cap Low Volatility Index ETF (SMLV) with a small profit.
We are buying the VanEck Morningstar International Moat ETF (MOTI) because it’s showing technical strength as it crosses above short-term moving averages.
We are selling the Short MSCI EAFE (EFZ) to cut losses.
We are buying the Invesco S&P SmallCap Energy ETF (PSCE) to capture renewed strength as this ETF breaks out of a short base.
Your final allocation will look like this:
40%: Invesco Dow Jones Industrial Average Dividend ETF (DJD)
30%: VanEck Morningstar International Moat ETF (MOTI)
20%: Direxion Daily S&P 500 Bear 1X Shares (SPDN)
10%: Invesco S&P SmallCap Energy ETF (PSCE)
As always, remember that these tactical trades are based on technical chart action, not fundamentals, market forecasts, or any other factor.
As a tactical portfolio, the Undiscovered allocation trades more frequently than the Aggressive, Moderate and Conservative portfolios. We are making no trades in those this week. If you missed last week’s alert, we featured trades in the Aggressive and Moderate allocations