As you are aware from the prior issue and the last update, the Undiscovered Portfolio is tactical in nature, meaning that we’ll be buying and selling funds on a fairly regular basis, as market conditions change.
Today, I’m selling two positions and buying two more.
Here are the following trades:
- Sell the 30% allocation of ALPS International Sector Dividend Dogs ETF (IDOG)
- Replace it with a 30% allocation into the SPDR SSGA US Small Cap Low Volatility ETF (SMLV)
- Sell the 10% allocation of the ProShares Short MSCI Emerging Markets ETF (EUM)
- Replace it with a 10% allocation into the ProShares Short MSCI EAFE (EFZ)
We are selling the ALPS International Sector Dividend Dogs ETF (IDOG) because it slipped below key support levels, although it gained some ground in Wednesday’s trade.
We are selling the ProShares Short MSCI Emerging Markets ETF (EUM) because we are exiting with a profit.
We are buying the SPDR SSGA US Small Cap Low Volatility ETF (SMLV) because it appears to be moving out of a flat area of consolidation, and with Wednesday’s gap higher rose 2.58%.
We are buying the ProShares Short MSCI EAFE (EFZ) to capture the inverse return of the MSCI EAFE index, which is declining in the face of the Russian invasion of Ukraine.
Your final allocation will look like this:
10%: ProShares Short MSCI EAFE (EFZ)
20%: Direxion Daily S&P 500 Bear 1X Shares (SPDN)
30%: SPDR SSGA US Small Cap Low Volatility ETF (SMLV)
40%: Invesco Dow Jones Industrial Average Dividend ETF (DJD)