Overtime

What are we buying?

Good morning,

Yesterday’s Monday Morning Playbook highlighted why we’re buying equities following the completion of our market bottom checklist. The tactical ETF portfolios traded, and of course, highlight some high conviction ideas with regards to portfolio positioning into year-end.

But today, I want to take it one step further and expand on what in this market looks like an opportunity and what areas to be skeptical of.

We’ll cover this for both ETFs and individual equities, but paid subscribers can always view the current Blue Chip Hot List, which was updated last Thursday.

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ETFs I like right here

XLK: Information Technology

Tech cleared the downtrend line from all-time highs and its mid-October highs yesterday, and the relative strength is undeniable. If this market is going to rally through year-end (which my bet is it will) tech should be right in the thick of it.

HACK: Cybersecurity

Fortinet keeps trying to ruin the party, but this group keeps working. HACK is above rising 50 and 200-DMAs, printed a daily MACD buy signal on Friday, and is at a buy point on the chart relative to the S&P 500.