Trade Alert – Equity And ETF Models
This morning we added 1% of AMD and XLK. As we have discussed on both our daily podcasts and weekly newsletter, we want to add large-capitalization technology exposure to portfolios that will benefit from both the rise in Artificial Intelligence and a disinflationary environment. While we continue to look for an opportunistic entry point to re-enter Nvidia (NVDA), Advanced Micro Devices (AMD) has registered a buy signal and is not nearly as extended as NVDA.
In the sector model, we may eventually sell some of our current iShares Technology Index (XLK) and add the iShares Semiconductor ETF to gain more direct exposure to these companies. Unlike NVDA, which is 3 standard deviations overbought, AMD is 10% off recent highs and well off the late 21 highs. It is also forming a series of constructive higher highs and higher lows.
AMD is a starter position, and we are hoping for pullbacks in the coming weeks or months to add to our position.
Equity Model
- Initiate a 1% position in Advance Micro Devices (AMD)
ETF Model
- Increase the current iShares Technology Sector ETF (XLK) to 8% of the portfolio.
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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