Trade Alert – Equity & ETF Models
In both models, we are removing the short S&P 500 index position (SH) as market internals have healed considerably. We will raise cash levels somewhat next week and allow reduced equity exposure, positioning, and cash to hedge the portfolio for now.
After previously reducing the Vanguard Extended Duration ETF (EDV), we added to the position today, given the more extreme technical oversold condition. We are going to trade that position for a reflexive rally, take profits, and reduce weighting once again.
Read today’s Daily Market Commentary for more on what’s happening with rates and why a decent trade set is occurring.
Equity Model
- Sell 100% of SH
- Increase EDV to 10% of the portfolio.
ETF Model
- Sell 100% of SH
- Increase EDV to 10% 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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