Portfolio

Note: If a stock has gone beyond my buy-up-to price, do not buy into that position. Wait for me to issue a new recommendation, or wait for the stock price to come down. Only have 10 to 12 stocks in your portfolio at one time, and don’t put any more than 8.5% to 10% of your money into any one monthly portfolio recommendation. Only put 2% to 3% of your money into my Special Report recommendations. If a position doesn’t have a “Close Price,” it’s still active and we’re still tracking it. Can’t see the portfolio? Try the print preview

Trade Alerts

Delta Trade Alert: SELL NTRA (click to expand)

March 10, 2020

To put it simply, this market is sick. Even extreme oversold conditions aren’t enough to present sustainable counter-trend rallies. Most pundits will toss up their hands and proclaim it’s simply not rational.

But most pundits also don’t pay attention to the clues from credit markets. And when credit markets do not confirm a big counter-trend rally, you can almost guarantee the equity rally won’t last.

Action to take: Sell long Natera, Inc. (NTRA) at the market.

Trade Details

Stock: Natera, Inc.
Ticker: NTRA
Sector: Life Science Equipment
Exit Details: Sell at the market
Here’s what I mean…

Chart

A popular risk gauge within credit markets shows increasing amounts of stress. In fact, the current stress goes well beyond what was evident during the Christmas Eve bloodbath in 2018.

We took a chance on an opportunity where the odds looked to be favorable.

But things are not OK.

Let’s continue to be patient and weather the storm. There is no better feeling than being able to remain calm while others panic. When others are too scared to act on future opportunities is when the patience will truly pay off.

Michael Coolbaugh
Editor, Delta Profit Editor


Delta Trade Alert: Buy KGC, GOLD (click to expand)

March 4, 2020

There are a lot of technical factors at play beneath the surface, but I do believe markets are extremely vulnerable. The minute details aren’t important because the effects can be seen directly through market activity.

I highlighted the negative reaction following the Federal Reserve’s emergency rate cut. But it’s not just the overall market. Things are bad, and much of it has to do with unintended consequences of the Fed’s own actions.

Take a look at Bank of America (BAC), for example, which is down nearly 10% following the surprise rate cut. And it’s no coincidence that the emergency repo operations have been oversubscribed by a record amount three days running following the Fed’s emergency rate cut.

Although we’ll likely get more rate cuts, it won’t be enough. Liquidity, in some form, will be forthcoming. And such reality is reflected by the resilience in gold miners…

Chart

There is always a risk of another contagion event, as was the case last Friday. But with such fundamental factors at play, those are likely to be short-lived.

Having said that, nothing was ever achieved by living in fear.

So, we’re re-entering some of our positions in gold miners with a smaller risk allocation so that we have the opportunity to add to our positions on any moments of weakness.

Action to Take: Buy Kinross Gold Corp. (KGC) at the market with a stop-loss at $4.50 per share.

Trade Details
Stock: Kinross Gold Corp.
Ticker: KGC
Sector: Precious Metal Mining
Entry Details: Buy at the market
Stop-Loss: $4.50
Risk Size: 0.50% to 0.75%
Action to Take: Buy Barrick Gold Corp. (GOLD) at the market with a stop-loss at $17.75 per share.

Trade Details
Stock: Barrick Gold Corp.
Ticker: GOLD
Sector: Precious Metal Mining
Entry Details: Buy at the market
Stop-Loss: $17.75
Risk Size: 0.50% to 0.75%
And be sure to let me know how you do on the executions for these trades…

Michael Coolbaugh
Editor, Delta Profit Editor


Delta Trade Alert: Buy NTRA (click to expand)

March 5, 2020

Markets are clearly manic. We’re seeing moves of plus and minus 4% and more every other day, signs, I believe, that markets are on the brink.

But that doesn’t mean there won’t be tactical opportunities along the way…

I’ll expand a bit more in our monthly video, but the heart of KP-7 is to identify moments of compression that are then followed by an acceleration signal.

It’s hard to find in this environment where volatility has exploded in just about every place we look. As such, it will take some time for most things to settle into our “compression” regime.

But, for those willing to do the searching, there are a few opportunities that have the potential for robust returns.

Action to Take: Buy Natera Inc. (NTRA) at the market with a stop-loss at $32.50 per share.

Trade Details
Stock: Natera, Inc.
Ticker: NTRA Sector: Life Science Equipment
Entry Details: Buy at the market
Stop-Loss: $32.50
Risk Size: 0.50% to 0.75%
Natera has certainly been under compression the past several months and has held up remarkably well, as evidenced by a graph of its relative performance, during the recent market turmoil.

At the first sign of another daily reversal, this is certainly a name that has the potential to post large returns in a short amount of time.

Be sure to let me know how you do on the executions for this trade…

Michael Coolbaugh
Editor, Delta Profit Editor


Delta Trade Alert: SELL TEVA, STE (click to expand)

March 4, 2020

I told you the pace would ebb and flow from our hectic pace over the first few weeks! All kidding aside, I am issuing a trade alert to trim every holding except for Gilead Sciences Inc. (GILD).

While the two positions aside from GILD have not yet triggered their stop-loss level, I feel as though it’s the prudent action at this time for one primary reason.

Very simply, I believe there is a heightened possibility of a market crash. And – just like we touched on last week where we saw your typical safe-haven assets, like gold, get tossed out with the bathwater – I believe there’s a similar possibility in the near future.

Action to Take: Sell Teva Pharmaceutical Industries Ltd. (TEVA) at the market.

Trade Details
Stock: Teva Pharmaceutical Industries Ltd.
Ticker: TEVA
Sector: Generic Pharma
Exit Details: Sell at the market
Action to Take: Sell STERIS PLC (STE) at the market.

Trade Details
Stock: STERIS PLC
Ticker: STE
Sector: Medical Equipment
Exit Details: Sell at the market
We touched on the dangerous backdrop for the markets all throughout January and February. After the initial panic, I highlighted in Friday’s newsletter that markets were poised for a rebound.

Well, we got our rebound. But I’m not of the camp that believes the recent selloff was a simple short-term hiccup in what will be a continuation of the recent bull market.

But there’s really one main reason that’s causing the hair to stand up on the back of my neck.

And that’s today’s market reaction following the emergency rate cut by the Federal Reserve.



You see, when the Fed feels the need to slash rates by 50 basis points in between meetings, things are serious. The last two times they conducted such emergency cuts were in 2008 and, before that, in 2001.

Here’s another fun fact: The last time the market rallied the same amount as it did yesterday, in percentage terms, was in 2008.

We all know monetary policy cannot fix a global pandemic. Yet our monetary central planners felt the need to make a move anyway. After a brief rally, markets quickly reversed and have been tumbling all day long.

The reality is beginning to set in that we’re at the end of a lengthy business cycle and monetary central planners have all but spent every last piece of ammo in their toolbox.

And whenever a market fails to respond to seemingly positive developments – you know, that the Fed will supposedly save the day – it’s typically a sign that something is seriously wrong.

I can’t say with certainty whether this crash prediction will ultimately come to fruition. But, for now, self-preservation is the prudent action. If the market does crash, there will be massive opportunities to exploit in the aftermath.

But, as we saw late last week, there’s a very real possibility that everything – including the kitchen sink – gets tossed out the window.

In fact, even as I write, gold is beginning to give up its massive intraday rally as the market has come under increasing pressure.

In the end, the recent developments should undoubtedly bode extremely well for gold. Right now, however, we’re still within the recent volatile range, and patience is of the utmost importance.

Be sure to be on the lookout for any new alerts, especially those in gold, as the dash for emergency policy response continues to pick up speed.

And let’s make sure to keep in touch during this tumultuous time…

Michael Coolbaugh
Editor, Delta Profit Editor


Delta Trade Alert: Sell GE, NWL (click to expand)

February 25, 2020

As painful as it may seem, there’s a bit more we need to do in the risk management department. If you thought selling yesterday was a struggle given it was such a big down day for the market; today will undoubtedly feel that much more difficult.

Then again, had we not respected our risk management process in yesterday’s carnage, we would still be holding on to several more large losses today.

So, here’s to sticking to our plans…

Action to Take: Sell General Electric Company (GE) at the market.

Trade Details
Stock: General Electric Company
Ticker: GE
Sector: Electrical Power Equipment
Exit Details: Sell at the market
Action to Take: Sell Newell Brands, Inc. (NWL) at the market.

Trade Details
Stock: Newell Brands, Inc.
Ticker: NWL
Sector: Home & Office Furnishings
Exit Details: Sell at the market
With the market becoming oversold, there is the potential for a short-term bounce in the days ahead, but it’s anyone’s guess as to whether that will actually unfold. What I will say is that these sorts of sudden shocks often leave scars and typically provide a warning sign for things ahead.

What do I mean by that?

According to sentimenttrader.com, “The S&P 500 has gone from an all-time high to a 2-month low in less than a week. The only times in 30 years it has done this were February and July 2007. Stocks jumped at least 5% at some point over the next few months both times before, you know, tumbling into the abyss.”

As I said, we might see a few bounces along the way. Personally, I’ve always found it better to reign in risk when the going gets tough. If nothing else, it should provide clear heads to tactically pounce on any opportunities that unfold in the days, weeks and months ahead.

Michael Coolbaugh
Editor, Delta Profit Editor


Delta Trade Alert: Buy NTRA (click to expand)

February 21, 2020

Markets are clearly manic. We’re seeing moves of plus and minus 4% and more every other day, signs, I believe, that markets are on the brink.

But that doesn’t mean there won’t be tactical opportunities along the way…

I’ll expand a bit more in our monthly video, but the heart of KP-7 is to identify moments of compression that are then followed by an acceleration signal.

It’s hard to find in this environment where volatility has exploded in just about every place we look. As such, it will take some time for most things to settle into our “compression” regime.

But, for those willing to do the searching, there are a few opportunities that have the potential for robust returns.

Action to Take: Buy Natera Inc. (NTRA) at the market with a stop-loss at $32.50 per share.

Trade Details
Stock: Natera, Inc.
Ticker: NTRA
Sector: Life Science Equipment
Entry Details: Buy at the market
Stop-Loss: $32.50
Risk Size: 0.50% to 0.75%
Natera has certainly been under compression the past several months and has held up remarkably well, as evidenced by a graph of its relative performance, during the recent market turmoil.

At the first sign of another daily reversal, this is certainly a name that has the potential to post large returns in a short amount of time.

Be sure to let me know how you do on the executions for this trade…
Michael Coolbaugh
Editor, Delta Profit Editor