Stockchase Opinions

Don Vialoux First Trust AlphaDEX U.S. Technology Sector Index ETF FHQ-T PAST TOP PICK May 17, 2016

(A Top Pick April 12/16. Down 1.84%.) This was actually too early to make the trade, but it turns out the technology sector, just during the last few days, is finally starting to show outperformance relative to the market, so now is the time to start buying this. Also, if you own it, continue to Hold. This particular ETF is very attractive right through to the middle of July.

$20.320

Stock price when the opinion was issued

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TOP PICK

There are 2 periods of seasonal strength for technology. The current one runs from April through to July and is based on the summer buying season for electronics.

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Apple (AAPL-Q) has a bit of an advantage right now, as people are big buyers of consumer technology at this time of year. This Christmas is no exception. Apple is the largest stock in the S&P 500, so it has the greatest influence on what happens. It is also the larger stock in the NASDAQ.

PAST TOP PICK

(A Top Pick Oct 14/16. Up 3.73%.) (All these picks started off with positive seasonality between now and the end of the year. On the technicals, at the very least you want the security trading in an upward trend and outperforming the market.) This is a play on the technology sector. The technicals have been very good and seasonality is very positive through to the 2nd week in January.

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About 70% of companies have international revenues and so benefit from currency changes.

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Tech ETF not dominated by tech's Magnificent 7?

This is one he uses. Made up of more mid-cap tech companies, not the giants or mega-caps. Moves really well when the market's moving up. Gives you diversified exposure to companies that maybe have a bit more pop in them.