As a followup to the article recommended by Robert, what profit protecting action is available to ITA Wealth Management readers and subscribers? The following ETF ranking table is packed with information we can use to protect capital. Here are a few to seriously consider.
- ETFs that are under-performing SHY are up for sale. In this market, the number of ETFs showing weakness are few. Only seven ETFs are in this category when using the semi-variance volatility calculation. Expect this number to increase of the next six months.
- Run your eye down the three Exponential Moving Average (EMA) columns. The fastest moving EMA we show is the 13-Day EMA and that is the first to show weakness so watch it carefully. I would not use it as a “get out” signal, but it is the “yellow light.” IDV is the first on our list. Note how much “blood” shows up in the ETFs that are listed below SHY.
- Platinum members following the ITA Risk Reduction (ITARR) model will consider vacating PCY. Even the 195-Day EMA is not a clear signal as PCY has a very strong absolute acceleration percentage. So long as the acceleration (momentum) remains positive, I don’t mind hanging on to PCY.
- Both BWX and PCY have a weak “Golden Cross.” That means the 13-Day EMA is priced below the value of the 49-Day EMA. That would be a sell signal were it not for the positive absolute acceleration percentage. Keep a watchful eye on both the “Golden Cross” (X/O) and the absolute acceleration. If both are negative, consider exiting that particular security.
- Pay attention to the ROC1 column as we don’t want that percentage to go negative on us without knowledge this is happening.
Overall, this worksheet is showing strong performance numbers so few changes are in order if one is in the market. This is exactly the time to keep a close eye on all the “portfolio eggs” listed above.