Many trades kicked in at the close of March 4th.
Utility Sector Trades
- Go long FXU – First Trust Utilities AlphaDEX ETF – at or near 21.42
FXU has been a winning trade for last six years. The average return has been 7.0% with average holding period of 50 calendar days giving 54% annualized return.
There is still one more potential trade within this sector – Guggenheim S&P 500 Eq Weight Utilities (RYU). We will send an alert if and when it triggers.
Health Care Sector
On February 12th, we outlined the seasonally favorable period for the Health Care sector. Since mid-February we have been waiting for the entry signals. The signals triggered for some of the ETFs in the sector.
- Go long XLV – Health Care Select Sector SPDR ETF – at or near 60.12, March 4th close
- Enter long FXH – First Trust Health Care AlphaDEX ETF – at or near 53.40
- Go long XPH – SPDR S&P Pharmaceuticals ETF – at or near 101.72
- Enter long IHE – iShares US Pharmaceuticals ETF – at or near 134.30
- Go long RXL – ProShares Ultra Health Care ETF – at or near 96.07
XLV has been successful 75% of times since 2000 for an average gain of 8.0% with a holding period of 115 calendar days giving 26% annualized return. The success rate for FXH is 80%. Its average gain is 14.3% and the holding period is 117 calendar days, which results in 45% annualized return. The XPH trade has generated a profit for the last six years with an average gain of 15.3% and holding period of 105 days for an annualized return of 53%.
IHE trade, has been also been successful over the last six years. The average return is 13.5%, holding period is 94 days and the annualized return is 52%. RXL had one losing trade in six years, average gain of 23.9% and holding period of 97 for an annualized return of 90%.
There is still one more potential trade within this sector – iShares US Healthcare Providers (IHF). We will send an alert if and when it triggers.