Sector & Industry Group Trade Ideas: Trend, Relative Performance, Asset Flows
The table below 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:
- positive price trends,
- relative outperformance versus the benchmark S&P 500, and
- 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 chronologically, with the newest ideas on top and new ideas or changes highlighted in yellow.
These ideas are intended to be potential short-term trading opportunities rather than longer-term investments.
Note that the “valid above” entries are not intended to be specific stop loss placement levels but rather general price areas that should loosely contain the ETF for the directional idea to remain valid. Also note that an entry of “new all-time highs” in the Target column does not mean that we suggest closing out the idea when new highs are made, but rather that the idea has open-ended upside expectations. We will typically stay with an idea as long as it continues to make money. Clients can track the ongoing status of each idea via this table.
Sector & Industry Group Ideas 2023 Performance: From 3/20/2023 through 12/22/2023, there were a total of 33 trade ideas presented in the table above which resulted in a cumulative gain of +80.0%. 60.0% of these ideas were profitable for an average profit of +2.4% per trade and a win/loss ratio of 2 to 1. The cumulative relative outperformance of these 33 trades versus the S&P 500 (SPY) was +42.0% for an average relative outperformance of +1.3% per trade.
Disclosure/Disclaimer: The information on this website is provided solely for informational purposes and is not intended to be an offer to sell securities or a solicitation of an offer to buy securities. The strategies employed in managing this and other model portfolios may involve algorithmic techniques such as trend analysis, relative strength, moving averages, various momentum, and related strategies. There is no assurance that these strategies and techniques will yield positive outcomes or prevent losses. Past performance as indicated from historical back-testing is hypothetical in nature and does not involve actual client portfolios, does not consider cash flows or market events, and is not predictive of future performance. The model is managed by contemporaneously recording hypothetical trades. Such trades are not live trades and are not influenced by emotional or subjective reactions to extraneous market, economic, political and related factors. The performance for such model(s) is derived from utilizing a variety of technical trading strategies and techniques. Technical trading models are mathematically driven based upon historical data and trends of domestic and foreign market trading activity, including various industry and sector trading statistics within such markets. Technical trading models utilize mathematical algorithms to attempt to identify when markets are likely to increase or decrease and identify appropriate entry and exit points. The primary risk of technical trading models is that historical trends and past performance cannot predict future trends and there is no assurance that the mathematical algorithms employed are designed properly, new data is accurately incorporated, or the software can accurately predict future market, industry, and sector performance. Asbury Research LLC does not and cannot provide any assurance that an investment in the model portfolios will yield profitable outcomes. The risk of loss trading in financial assets can be substantial, and different types of investment vehicles, including ETFs, involve varying degrees of risk. Therefore, you should carefully consider whether such trading is suitable for you in light of your financial condition. An investor’s personal goals, risk tolerance, income needs, portfolio size, asset allocation and securities preferences, income tax, and estate planning strategy should be reviewed and taken into consideration before committing to a specific investment program. Please consult with your financial advisor to discuss the appropriateness of any strategy prior to investing. All investments involve risk. Principal is subject to loss, and actual returns may be negative. Returns are not guaranteed in any way and may vary widely from year to year.