Yielding Returns Across a Range of Sectors
by Mike Paulenoff
June 17, 2017 • 12:00 AM EDT
Four trades closed out in recent weeks, yielding a total return of 12%, demonstrate the way in which Mike opportunistically identifies trending sectors through a combination of technical and macro analysis, nabbing returns from their leading component stocks and ETFs.
In banking, he added the SPDR S&P Regional Banking ETF (KRE) on June 5 at $52.73, noting: "Increasingly, my work argues that KRE completed a major correction from its March 2 high at $59.68 to its May 31 low at $51.08, which ... means that the price structure is coiled-up ahead of a thrust to the upside into a new advance within the larger upleg off of the $32.63 low in February 2016 into new high territory."
He added that "such a move also will imply that the regional banks are benefiting from the Trump growth agenda, higher rates, and from a roll-back in Dodd-Frank regulation."
Mike exited KRE this past week at $54.97 for a 4% gain.
In biotech, Mike entered the SPDR S&P Biotech ETF (XBI) on June 1 at $69.50, reasoning that "the time has come to take a long position within 'The Handle' portion of the huge Cup and Handle base formation carved out by XBI during the past 18-20 months."
He exited four days later at $70.88, yielding a 2% profit.
See the chart Mike was viewing when he entered the trade:
Mike also closed out his Under Armour, Inc. (UAA) trade this week for an 8% return in two months, and recently completed a trade in American International Group, Inc. (AIG), gaining 2.3% in less than a week.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Last October 21, 2024, I alerted MPTrader members to a Goldman Sachs upgrade of optical products retailer Warby Parker (WRBY) to Buy from Neutral. Goldman attached an 18.00 target price to the stock. At the time of my post to members, WRBY was trading at 17.55 in reaction to the GS upgrade, up 6% from the prior close, and just 2.5% from Goldman's 12-month target price.
On February 26, 2025, just 30 minutes before NVDA (Nvidia Corp) was scheduled to release its highly anticipated and potentially consequential Quarterly Earnings Report, I reiterated my most recent analysis uploaded before the opening bell. This is what I posted to the MPTrader Discussion Room:Technically, my Big Picture setup work on NVDA argues that the 2/03/25 low represented the END of a major correction that originated at NVDA's "orthodox" price high of 152.89 on 11/21/24-- the session following the company's November 20, 2024 Earnings report.
Before the market opening on February 4, 2025, hours after Palantir Technologies (PLTR) reported stellar Earnings, this is what I discussed with MPTrader members:In reaction to Earnings, PLTR has sustained strength above my "outlier" target zone of 96 to 100, which requires new upside pattern parameters. My optimal price path from atop the post-Earnings, 25% upmove points to an immediate objective of 105-08, followed by a contained pullback into the 95 area, ahead of a thrust toward 115-118 thereafter... Last is 103.50...
On January 6, 2025, this is what I discussed with MPTrader members about the Chinese equity names--Alibaba (BABA) in particular:BABA-- For anyone who wants an outlier contrarian play for the first two-quarters of the Trump Agenda, let's consider BABA. Purely from a technical perspective, I can make a compelling technical argument that the 12/20/24 low at 81.5 ended the larger correction off of the Oct 2024 upleg (from 71.80) high at 121.06. To confirm the low, any weakness must hold support at 81.50-83.
Never a dull moment since January 20, 2025! This weekend, POTUS imposed 25% tariffs on Mexico and Canada, and 10% on China, which go into effect on Tuesday. From an initial market perspective, tariff trade war fears have triggered a risk-off reaction from Bitcoin-- the only highly liquid weekend market that can give us insight into what to expect for Sunday evening and Monday morning trading.