ValueTrend introduced a new Equity Platform called “VTAGS”- ValueTrend Aggressive Growth Strategy.
This strategy is a higher risk/ higher return model. We are buying stocks, sectors, commodities, currencies and even country indices off of a few different investment strategies. These include looking for capitulation bottoms and turnarounds, trading ranges and even buying fundamental deep-value opportunities . We are not averse to single inverse ETFs for overbought sectors or markets.
I thought it might be interesting to name 3 picks from that portfolio for my BNN show coming up this Thursday at 6:00pm. As with all of my BNN picks: All are owned by me personally as well as for our clients who hold this strategy. I might add that these three picks are not necessarily as “safe” as most of the other positions I like to pick on the show. They also have much shorter time horizons. Do your homework on these ideas – they are not necessarily for the conservative investor. But, with risk comes return. And that is the trade-off our VTAGS strategy is attempting to capitalize on.
IBB-US – Biotech ETF: Coming off of support, in the seasonally strong part of the year for this sector
Biotech does have some seasonality behind it from June until October. The sector is bouncing off of support at $100. Our target is somewhere near $114. This sector is highly volatile – if you like beta, this is the sector for you. It’s not oversold via the mid-termed RSI reading, but the strong signal on stochastics qualifies it as a pretty good short termed potential mover. So, we may not see it hit $114 resistance—but I’d expect it might go up a few bucks. And for the VTAGS strategy, that’s good enough for me. Obvious stop loss point is a break below $100 for a few days.
DBB- base metals ETF: Base metals, particularly copper which is a large component of the ETF, are testing support.
Seasonality is neutral for metals right now. The base metals sector has been under pressure from a strong USD and the Chinese trade talks. Neither of those are likely to be influences forever. There’s a good chance that the China trade talks will be resolved by the fall – if not earlier. The USD continues to be strong, but it may have reason to move sideways for a while. You can see via the RSI and stochastics indicators how oversold the metals are. While the long termed MACD is not hooking up, I am not considering that indicators pattern for this trade. We look for a 10-15% oversold bounce – perhaps to the 200 day SMA or to its last peak ($16-$17)…. then out we go. A stop below $15 might make sense.
SLV- Silver has not been following gold in its rebound. A small seasonal window runs from June to August for this metal
Support was successfully tested at $13, we bought about $13.50 and are looking at a sell near $15. You can see on the chart where old support at $15 is likely to come in again as resistance. You will also note that there are some significant hooks on the two quicker momentum indicators RSI and stochastics. Here for a good time, not a long time –we are looking for a quick 10% or so upside on this trade, then Hasta La Vista, baby (per Arnie’s great Terminator 2 movie). Stop below $13.