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
This past Monday, with Nike (NKE) poised to report earnings later in the week, Mike Paulenoff told MPTrader members that "NKE is vulnerable to a press into the 140-143 target zone either ahead of, or in reaction to, the earnings news."
NKE was trading at 161.75 at the time, and by the week's end the stock was 149.59, having hit a low of 148.
Back on August 18th, nearly two weeks ahead of ZM's (Zoom Video Communications) earnings report, Mike Paulenoff cautioned MPTrader members about the stock.
Mike wrote: "The price structure, which has pressed relentlessly lower (15%) since its 8/05 rally high at 404.35, is probing -- and trading below -- its 100 DMA, now at 345.67, and is considerably beneath its 200 DMA, now down-sloping at 367.20.
In our Top Call article a month ago, we told you about how Mike Paulenoff called AAPL's upside continuation, with the expectation that the stock could extend a little higher before upside exhaustion.
AAPL, indeed, went on to stair-step higher to reach a high of 157.26 high last week, overshooting the upper boundary of Mike's 153-156 projected high-zone by just 0.8%. It then proceeded to initiate the expected bout of weakness that accelerated to the downside this past Friday.
On August 11, Mike Paulenoff alerted MPTrader members to a significant upside reversal signal in AMZN.
Mike wrote that "the 500 point decline is nearing downside exhaustion," noting a preferred downside target zone of 3180-3200.
Fast-forward to August 20, when AMZN pressed to a new multi-month corrective low at 3175.76.
On August 3, Mike Paulenoff alerted MPTrader members to the developing setup in AAPL that also would eventually impact the broader market:
Mike wrote: "AAPL continues to levitate within a high level digestion period and pattern off of its ATH at 150 hit on 7/15. All of the action since mid-July certainly resembles a Triangle pattern atop the May-July upleg from 121.68 to 150.