SET Portfolio Update March 2015

Any way you look at it, February was a great month for stocks… and a great month for our ETFs.

The ‘risk on’ trade and bullish sentiment swept into the market.  It pushed the S&P 500 to a new high of 2,119.  The large cap index is now up more than 3% for the year.

What’s more, the NASDAQ eclipsed 5,000 for the first time since the peak of the dot-com boom in 2000.

We’ve seen strong performance out of several sectors over the last month.  The sectors with the best performance were consumer discretionary, basic materials, and technology.

The main catalyst for the upward surge in stocks has been strong earnings, low oil prices, and improving prospects for global economic growth.

Now that earnings season is over and there’s relative calm on the geopolitical front around the globe, there’s not much for investors to be concerned about at the moment.

There’s sure to be the typical market ebbs and flows, but the markets seem destined to continue their bullish uptrend from here.

Now, onto the updates…

. . . . iShares Medical Devices ETF (IHI) – Buy

IHI closed at a new high of $120.13 on Monday.  Our newest addition to our portfolio is up 2.5% in just a few weeks.  It’s right at our buy up to price… grab your shares below $120.00 if you haven’t already done so.  The price target is $140.00.

. . . . Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) – Hold

RHS also made a new high of $110.04 on Monday.  This ETF is clearly being helped by the very optimistic quarterly earnings reports from many retailers in the fourth quarter.  RHS is now above our $108.00 buy up to price.  The price target is $122.00.

. . . . Market Vectors Gaming ETF (BJK) – Buy

Casinos are gearing up to cash in on the improvement in US employment.  The tide seems to have turned for BJK.  This ETF has tremendous upside as it enters into a new uptrend. Buy BJK below $41.00.  The price target is $55.00.

. . . . Market Vectors Semiconductor ETF (SMH) – Hold

SMH closed at a new high of $58.47 on Monday.  The tech sector is surging higher as evidenced by the NASDAQ eclipsing 5,000 for the first time since the peak of the dot-com boom.  Today’s tech market is much different than the one in 2000.  It’s is being led higher by stocks that have the earnings and growth that deserve their current valuations, not the hype and hope that the dot-com stocks had.  Continue holding SMH for more upside.  The price target is $71.00.

. . . . First Trust NASDAQ-100 Technology Sector Index Fund (QTEC) – Hold

QTEC is in a similar position to SMH.  These two tech ETFs are clearly benefiting from bullish sentiment toward tech stocks.  It made a new high of $45.28 on Monday and should continue moving toward our $50.00 price target.

. . . . First Trust Health Care Alpha Dex Fund (FXH) – Sell

Healthcare stocks have been a great performer over the last year.  FXH reached our $65.00 price target on Friday.  That’s our cue to sell FXH for a gain of 17.8%.  That’s not too shabby for a six month hold time.  Congratulations on a successful trade!

. . . . Global X Social Media Index ETF (SOCL) – Buy

SOCL may have lost some of the bullish momentum.  But these fast growing companies could be one of the brightest spots of 2015.  Buy SOCL up to $20.00.

. . . . Financial Select Sector SPDR (XLF) – Hold

XLF has been a middle of the pack performer over the last month.  There’s no denying that big banks are having a harder time making money under the new regulations than I expected.  But the overall improvement in the economy, as well as less restrictive lending requirements, should help banks grow their businesses in the months ahead.  My price target for XLF is $29.00.  Continue holding for bigger gains.

. . . . Guggenheim Solar (TAN) – Hold

Solar stocks are on a major upswing.  A host of positive developments, like a partnership between First Solar (FSLR) and Apple (AAPL), have the entire sector moving higher.  The big rally I was expecting has arrived… continue riding this wave of bullish sentiment.

. . . . PowerShares Dynamic Leisure and Entertainment (PEJ) – Hold

PEJ surged to a new high of $38.52 on Monday.  This consumer discretionary ETF is clearly benefiting from an upbeat 4th quarter as well as optimism about cheap oil prices leading to additional consumer spending.  My price target for PEJ is $41.00.  Continue holding.

Action To Take

• Sell FXH for a gain of 17.8%.
• Move RHS from Buy to Hold.

 

Category: SET Portfolio Updates