The table below is an updated version of Table 2 in the Feb 6th Keys To This Week: Market Sectors & Industry Group report. This table includes updates to its Valid Above column. which is intended to be a “soft” stop loss level rather than a strict stop loss price. In our view, the significant increase in day-to-day price volatility over the past several years makes it much more difficult to successfully utilize a strict, “hard” stop. We suggest using these Valid Above prices as levels that should loosely hold as underlying support for the bullish implications of our trade idea to remain valid.
This table lists Sector and Industry Group ETFs that are currently displaying favorable quantitative/technical characteristics for upcoming outright strength and relative outperformance versus the US broad market. Specifically, we are looking for 1) positive price trends, 2) relative outperformance versus the benchmark S&P 500, and 3) expanding investor assets. The ETF name and ticker, the date the idea was initiated, the price target, and the price that the idea remains valid above (or valid below if a short idea) are listed for each idea. The current performance of the idea, both outright and relative to the S&P 500, is also listed. The ideas are listed in chronological order, with the newest ideas on top, and new ideas or changes from the previous week highlighted in yellow.
Editor’s Note: This table, which is currently somewhat hidden within a Keys To This Week report, will soon join the Asbury 6th, The SEAF Model, etc. as the 6th rectangle at the top of the Research Center. This increased visibility will allow us to make more intraweek changes to the ideas within this table.