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.
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More Top Calls From Mike
On March 13, amid a broad discussion about the emerging bull phase developing in the precious metals and miners, Mike Paulenoff posted this about WPM (Wheaton Precious Metals) to our MPTrader discussion room:From a more Silver-Gold perspective (if FCX is perceived to be Copper-centric), let's notice that WPM strength is pushing up against its near-term resistance line in the vicinity of 45.
Right after the opening bell on the morning of October 20, 2023, Mike Paulenoff posted the following GLD (SPDR Gold Trust) commentary to our MPTrader Discussion Room:"For all of the long-suffering Gold Bugs... As we speak, GLD is attempting to take out key 5-month resistance lodged between 181.20 and 184.40, which if successful and sustained, will point GLD to 188-190 next... Last is 183.88...
During the afternoon session of February 15, this is what Mike Paulenoff posted to the MPTrader Discussion Room about the technical setup in the oil service company SLB (Schlumberger):"This name in the oil service sector exhibits a well-demarcated 4-year bullish channel with the SLB price structure upturning off of the lower boundary line in the vicinity of 47.00 (the 2/13/24 low) amid a glaring double non-confirmation of the weakness into the lower channel line.
On December 26, 2023, fellow MPTrader member FJB asked me the following question: Mike - do you feel comfortable giving some of your top sectors for next year if you have any? This was my response:In order of preference based on my technical setup work:1- XLV (Healthcare)2- XLB (Materials)3- XLE (Energy)4- XLI (Industrials)5- XLF (Financials)As of the close this past Friday, 3/15/24, YTD results showed XLV +6.58%, XLB +6.15%, XLI +7.06%, XLF +8.54%, and XLE (Energy) leading all sectors, at +9.27%.
On February 23, Mike Paulenoff posted the following timely commentary about the bond market to MPTrader members:"Benchmark 10-year YIELD and TLT (20+ Year T-bond ETF)-- I am getting initial, but very strong technical signals that the backup in 10-year YIELD from the late-March low at 3.78% to yesterday's (2/22/24) high at 4.35% is nearing exhaustion ahead of a rollover into another downleg within the larger downleg off of the October 2023 high at 5.00% (see my attached Daily Chart).