Trade Alert – Equity & ETF Model
As discussed in this past weekend’s newsletter, sentiment is getting extremely bullish, and markets are overbought and extended. We are due for a short-term correction or consolidation, with the market up 14 of the last 15 weeks. As we wrote:
“While we have warned of a potential correction over the past couple of weeks, it reminds us much of June and July last year, where similar warnings for a 10% correction went unheeded. As such, we will rebalance exposures next week by taking profits in some positions with significant gains for the year and adding to current positions where we are underweight. We suspect the current environment is much the same as 2022, and the bullish rally will go further to suck the last of the holdouts in. However, we want to make adjustments before the correction comes.”
That is the process we are starting today with the following trades.
Equity Model
- Take profits and rebalance to the following positions: ABBV, NVDA, MSFT, GOOG, and PG.
- Add to both CMCSA and DUK to bring those positions back to target weights.
ETF Model
- Reduce XLC and XLK back to target weights.
Want These Alerts Via TEXT?
To receive trade information via text, click on your user name in the upper right corner of the website. Then click My Account and the title SMS Notification Preferences.
NOTE: You must add your country code in front of your number. The U.S. code is 1.
Please let us know if you have any problems.
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
Customer Relationship Summary (Form CRS)