This class reviewed the Sector Selector to find quite attractive rotations over the past month. Many of the defensive sectors (like Utilities and Staples) have fallen on a relative basis, and many cyclical areas (like Discretionary and Communications) have risen. This suggests that the market's risk appetite is much stronger today than it was for most of last year. We concentrated today's trade ideas in the Communications sector.
This basic options class discussed the recent options expiration and how our portfolio has slimmed down tremendously due to a number of our positions going to max gain. We also have the odd challenge of finding companies that are still appropriately priced after the market has had a sizable rally this calendar year. Our head-to-head matchup was between a REIT and a Staple (two sectors underperforming recently).
This DGI class discussed the idea of the "crossover chart", which teaches a concept that smaller dividend yielders with faster dividend growth can produce better results than higher dividend yielders with slow/no dividend growth. We also discussed an interesting flash crash situation that affected a handful of stocks on the NYSE this morning. Our head-to-head match-up was in the Consumer Staples sector.
Today's class discussed stop losses and some of their weak points, in light of yesterdays software/data glitch at the NYSE causing all kinds of chaos with well known stocks. We discovered on the Factor Selector that Low Size is still leading and Momentum is still lagging. We ended class with 3 swing trades that had moved quite aggressively while we were in class.
The purpose of this session is to answer questions from students regarding topics taught in Brandon Van Zee's weekly classes. The goal is to help you apply the learning you receive to your own portfolio as you watch Brandon apply the same concepts in his class portfolios. Stocks discussed: DTE, CME, SHY, MKC, JPM, PM, RCL, EXPD, and WBA.
In today's class, we discussed stocks' moves heading into important basket of data and earnings reports due in next 10 days. We looked at the bull case from a macro perspective and talked about the impact of a new bull market in risk appetite and how it would impact different asset classes and our portfolio allocations.
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