Publishing Note: My life is complicated for the next two weeks (my wife and I are moving into a temporary spot waiting for the new home to be completed). Thus we will publish Daily Updates as my schedule permits. However, as usual, we will publish TRADE ALERTS before any adjustments are made to the portfolio.
The Early Take on the Market:
The President's first foreign trip couldn't have come at a better time given the ongoing news cycle issues relating to Russia, etc. Instead of focusing on who said what to whom and when, the news today is all about arms deals and yet another attempt to create peace in the Middle East. Oil is also in the news this morning as talk of extending the current production cuts for another nine months has allowed crude to rebound sharply from recent lows. Looking at the markets, things are fairly quiet on this Monday morning. However, given the recent bout of volatility, traders are likely to be watching the key lines in the sand on the charts this week.
Turning to our portfolio...
LEADERS Model: Although the leadership has shifted a bit recently, we are content with our current positioning. The LEADERS Model continues to hold Technology, Consumer Discretionary, and Materials. As for performance, we continue to be pleased with the results of the model versus the S&P 500 (the LEADERS is up 8.60% ytd vs. 6.38% for S&P 500).
CORE EXPOSURE Model: The CORE model's exposure was cut in half last week due to the increasing risk factors and is now slightly above the model's recommended level at 25% vs. 20%.
TRADING Model: We currently hold trades in oil, which after a rocky start, looks to be heading in the right direction now, the ...