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Market Outlook If you look at the index levels, things look like they are improving. Under the surface, however, there has been an extreme "rotation" -- a five standard deviation move between momentum into value stocks. Unloved stocks are getting bought up, while strong steady performers are being sold. Monday was the highlight, but it may become a trend going forward. He thinks hedge funds are reducing exposures, so this means covering short hedges. Share buybacks are happening in the market as well. There are three weeks of really solid buying he thinks. Then the markets will return to being influenced by trade talks and politics.

Within the payment card space, AXP-N has a closed loop network -- they can gather their own customer data on spending and credit use. This allows them to do better target marketing. Someone will probably come in to buy that network in the future he thinks. About 20% of their revenue comes from credit card balances making them susceptible to credit downgrades. He would not step into them now.

An interesting turnaround story. It will never have the Herculean run they had in the past. An interesting candidate for a covered call option write strategy. At the end of the day he wants to see how the market goes -- if the market falls this will fall faster (high beta). Trade resolution will cause the stock to continue higher, but otherwise it may stutter. He would wait for a while.

It is struggling with reimbursement risk and is a real political hot potato. The US Administration is looking for political wins going into elections and will likely target drug costs. He would step away right now. He wouldn't try to chase value.

This really reacts to daily user usage metrics. He has been hesitant to enter into fad investing. He thinks it may get picked up by another company and bolted on their social media strategy. The multiple is volatile due to the swings from negative to positive earnings. They are up against a giant, so he would stay away for now.

He wouldn't lean into the semi-conductor space yet. Last earnings they beat, but they are trading at 50 times earnings -- pretty rich this late in the cycle. If the market goes down, this will likely fall faster.

(A Top Pick Sep 12/18, Up 20%) He still likes being in this. A real steady grower. If you think 10 year rates stay around 2% this will be good to hold. If interest rates go up, this will be a tough hold. He thinks slow growth or a modest recession is likely, so holding this is good. If economic growth accelerates, selling of real estate will accelerate too and he would be forced to sell out.

(A Top Pick Sep 12/18, Down 1%) He was stopped out of this. The medical devices space is good. Biotech services, are under huge pressure. This ETF was a little too inclusive so he exited.

(A Top Pick Sep 12/18, Up 24%) Their cloud growth is up 65%. Management thinks they can double Office365 commercial usage. It continues to be the standard in the software and tech space.

It is leveraged to global consumer spending. They continue to boost margins and cut spending. The multiple is very rich as you are paying 20 times for 8 percent growth in earnings. (Analysts’ price target is $57.00)

High income ETFs? If you are looking for income, be careful. There are a lot of components in the basket that you might not want to own. You are better to look at the sectors and themes you like and look for high yields there. XLRE-N is a high yield ETF in the real estate sector (3.5% yield), for example. The quality of the holding is more important as you want to preserve your capital.

They have demonstrated stability of earnings. Long term, he wonders if they can monetize their business strategy. It has to go through a big investment cycle to keep up with the other social media platforms. The online market is getting increasingly competitive. This is not a well-timed entry.

Down 30% last month! It should be a steady-Eddy story, but the change in interest rates has been negative on this. He likes XLRE-N as it holds 40% in data centres and towers. At the end of the day, apps files and photos all require more data-bytes which will be going through 5G towers. If strong economic rates resume, this will likely get beaten up. He will likely be stopped out of his position.