Trade Alert – Equity & ETF Models
In our latest analysis of relative performance, staples have become extremely oversold relative to the rest of the market, while energy, which we trimmed earlier this week, is now more overbought. This is shown in the relative analysis section of SimpleVisor.
Of the Staples sector, Proctor and Gamble (PG) is the most oversold on a relative basis. Therefore, this morning, we added .5% to PG and 1% to XLP. With staples turning on to strong buy signals, we could well see a rotation to this sector which has some of the strongest fundamentals. Notably, this addition is also a defensive move and will likely accompany further portfolio shifts in the coming weeks and months.
Equity Model
- Increase PG to 3.5% of the portfolio.
ETF Model
- Increase the iShares Staples ETF (XLP) to 7% of the portfolio
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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
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