🔥🔥 Four of our recent ETF insights: US Tech, 2 x SP500 & MSCI Brazil
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TODAY’s Big Ideas:
TECHNOLOGY SECTOR SPDR sets up for +6.3% rally in 2 months
SPDR S&P 500 ETF TRUST sets up for +5.2% rally in 2 months
SPDR S&P 500 ETF TRUST sets up for +3.3% rally in 1 month
ISHARES MSCI BRAZIL ETF sets up for +8.2% rally in 1 month
For more investment insights, please visit us at www.LongShortBets.com
(1) Score 9.7 (out of 10): TECHNOLOGY SECTOR SPDR sets up for +6.3% rally in 2 months
What’s Going On Here?
Tesla, Microsoft and Apple have released strong earnings and also delivered on 2022 guidance expectations. The market might have discounted this year’s rate hikes, to some extent, as the next FOMC meeting is far out in March. The market’s focus can well be on the strong earnings from the tech sector. 10-year bond yields have also failed to rise this week, a sign that tech stocks might be able to rebound.
Why Now?
TECHNOLOGY SELECT SECT SPDR has triggered a new high volatility signal (3 month). During similar occasions, TECHNOLOGY SELECT SECT SPDR shares had a median return of +6.3%, over the following 2 months – based on 10 historical occasions with 10 of those showing positive returns (100%). This buy signal for TECHNOLOGY SELECT SECT SPDR received a high score of 9.1 (out of 10). This insight was generated on 2022-January-28 with last price of 158.00.
What’s This Company About?
TECHNOLOGY SELECT SECT SPDR is in the Sector Fund-Technology business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: XLK US.
What’s My Risk / Reward and Time Horizon?
We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 167.99 (+6.3%) has been reached. Based on TECHNOLOGY SELECT SECT SPDR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 155.5 (last price at 158.00), which is equivalent to a -1.6% decline.
You might also like: Score 9.3 (out of 10): MICROSOFT CORP poised to seasonally rally by +11.3% during the next 90 days.
(2) Score 9.9 (out of 10): SPDR S&P 500 ETF TRUST sets up for +5.2% rally in 2 months
What’s Going On Here?
Apple has topped analysts’ sales and profit estimates as the company has handled chip shortages particularly well and estimates shortages are easing. This could be a big turnaround for the overall market as the key driver behind the Fed’s rate hike expectations appears to be the on-going inflation expectations which are driven by supply shortages. We heard similar comments from Tesla when the EV manufacturer announced their earnings a few days ago.
Why Now?
SPDR S&P 500 ETF TRUST has triggered a new high volatility signal (3 month). During similar occasions, SPDR S&P 500 ETF TRUST shares had a median return of +5.2%, over the following 2 months – based on 10 historical occasions with 10 of those showing positive returns (100%). This buy signal for SPDR S&P 500 ETF TRUST received a high score of 9.3 (out of 10). This insight was generated on 2022- January-28 with last price of 441.95.
What’s This Company About?
SPDR S&P 500 ETF TRUST is in the Growth&Income-Large Cap business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: SPY US.
What’s My Risk / Reward and Time Horizon?
We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 464.9 (+5.2%) has been reached. Based on SPDR S&P 500 ETF TRUST’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 439.45 (last price at 441.95), which is equivalent to a -0.6% decline.
You might also like: Score 7.8 (out of 10): LIVE NATION indicates to return +13.3% rally in 3 months
(3) Score 9.9 (out of 10): SPDR S&P 500 ETF TRUST sets up for +3.3% rally in 1 month
What’s Going On Here?
Since the beginning of the year, equity markets have been driven by the expectations that the FOMC will raise rates twice in Q1 – previously expectations were for just one rate hike. In addition, Fed Chair Powell has indicated that the FOMC sees also the balance sheet as too large. Both rate hikes and a smaller balance sheet indicate tightening of liquidity. The question for investors is: has the market now priced in too much tightening?
Why Now?
SPDR S&P 500 ETF TRUST has triggered a new high volatility signal (3 month). During similar occasions, SPDR S&P 500 ETF TRUST shares had a median return of +5.3%, over the following 3 months – based on 10 historical occasions with 10 of those showing positive returns (100%). This buy signal for SPDR S&P 500 ETF TRUST received a high score of 9.5 (out of 10). This insight was generated on 2022-January-21 with last price of 438.
What’s This Company About?
SPDR S&P 500 ETF TRUST is in the Growth&Income-Large Cap business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: SPY US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 461.02 (+5.3%) has been reached. Based on SPDR S&P 500 ETF TRUST’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 435.48 (last price at 437.98), which is equivalent to a -0.6% decline.
(4) Score 7.4 (out of 10): ISHARES MSCI BRAZIL ETF sets up for +8.2% rally in 1 month
What’s Going On Here?
Investors continue to see a bumpy path for the Brazilian economy as national elections are coming closer. Stock market strategists are calling for +20% upside as risks seem partly priced in.
Why Now?
ISHARES MSCI BRAZIL ETF has reached a new shorter-term high. Previously, during similar occasions, ISHARES MSCI BRAZIL ETF shares had a median return of +8.2%, over the following 1 month – based on 10 historical occasions with 7 of those showing positive returns (70% hit ratio). This buy signal for ISHARES MSCI BRAZIL ETF received a high score of 7.4 (out of 10). This insight was generated on 2022-January-12 with last price of 28.85.
What’s This Company About?
ISHARES MSCI BRAZIL ETF is in the Country Fund-Brazil business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: EWZ .
What’s My Risk / Reward and Time Horizon?
We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 31.22 (+8.2%) has been reached. Based on ISHARES MSCI BRAZIL ETF’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 27.05 (last price at 28.85), which is equivalent to a -6.2% decline.
For more investment insights, please visit us at www.LongShortBets.com