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Sector Rotation March 2021Recent market sector rotation coming out of the COVID crash has confirmed Sector Rotation theory. I made this video to give viewers a brief introduction to the theory and provide some actionable investing ideas based on what Sector Rotation suggests will be the next stocks to potentially outperform. Sector Rotation theory suggests that from market bottoms the two sectors that should lead are Consumer Discretionary and Technology. These two sectors did in fact lead the market out of the COVID crash. The next sectors to lead as the market matures are Industrials and Materials. These too followed the theory through 2020 as the bull market grew. At the market top Energy is supposed to lead and sure enough we have seen quite the run on Energy related stocks. What that means going forward if the theory holds is that Consumer Staples and Healthcare should outperform the market.
AMEX:SPYEducation
by norok
19
Paper Portfolio vs S&P500 - Update #1This is the first update for the video series here to grow the paper portfolio on TradingView in an attempt to beat the 'S&P index real time. Normally, I will compare the portfolio to the market, talk about weak vs strong stocks and sectors & go into what I will be changing moving forward. The portfolio has been able to get ahead of the general market and below are the specific percentage changes if they weren't clear in the video: AUGUST 2018 Portfolio = +1.83% 'S&P Index ('SPX) = +1.36% 'SPY ETF = +1.57% So far there is only a small difference between the market and the portfolio, but with adjustments and the market moving however it wants to, the changes should be expected to be more different over time. In general and in brief, my process of dealing with my portfolio according to my trading strategy is to check the health of my portfolio to determine where weakness is coming from, then run a stock screen according to my very own specific criteria to pick out the stocks that have high chance of performing very well, and finally an analysis of the market sectors to make sure changes I make will make sense. So this time around my portfolio suggested reducing exposure to stocks in Energy, Financials and Industrials. My stock screen, compared to the previous stock screen run at the beginning of the portfolio, suggested reducing exposure to stocks in Energy, Financials, Technology & Utilities and increasing exposure in Basic materials, Consumer goods, Healthcare and Industrials. The market sector ETFs from the video also echoed a similar idea, and so the orders will be placed for Monday. I am considering putting more weight in the stocks that have a better chance of doing well than before but we will see what happens over the next month. Again this is will not be a one time "get rich quick" process with excessive risk-taking or gambling, but a more disciplined approach to trading. It takes some work and it can be tough to maintain discipline, but after a while it becomes routine. Again, monthly updates on the current state of the portfolio will be continued and the next one can be expected to be made on 10/06/18 (1 month from now) and every month from that point onward. Starting capital - $10,000 Risk per trade - 1% Max. positions at a time - 20 Investment style - Equities long only (no short-selling, only stocks >$7, technical analysis > fundamental analysis) The stocks shown will not be shown as investment advice but rather shown as a form of education only. Comment on what you would like to see or hear more about! Thanks and stay tuned (will try to keep videos not too long)!
AMEX:XLUEducation
by themdtrader
Risk on/Risk off, XLY:XLP ratios, THE Real money flow indicator.Was recently shown this little gem of a ratio chart that will help gauge strength to certain markets such as the stocks and other financial instruments as the S&P, Dow Jones etc So what does it all mean?? The ratio of two diametrically opposed asset classes often provides insightful clues about what investors are doing. The XLY:XLP ratio is a perfect example. Its not a hypothetical as it uses real money data based on what investors are DOING and NOT what they maybe thinking or projecting... XLY represents the Consumer Discretionary Select Sector SPDR ETF. XLP represents the Consumer Staples Select Sector SPDR ETF. XLY is the ETF which tracks the consumer discretionary sector XLY’s top 5 holdings are... Comcast (CMCSK), Walt Disney (DIS), Amazon.com (AMZN), Home Depot (HD), McDonald’s (MCD). XLP tracks the consumer staples sector, with top holdings of... Procter & Gamble (PG), Coca-Cola (KO), Philip Morris (PM), Wal-Mart (WMT), CVS Caremark (CVS). So how does this affect markets? When the chart value rises its a clear indicator that people are happy to spend freely and without caution, investors will look to increase risk, where as if the value starts to go down and decline, people are spending more on everyday essential items and thus stock markets are in shrinkage, decline and investors are taking LESS risk. we can clearly see how this chart reflects current highs on the stock indices if we compare to the current S&P500, Russel, Dow Jones and so on If this article has helped or you have any further questions, please leave them in the comments below.....
AMEX:XLYEducation
by majorlee
1