Trading opportunities including fundamentals, technical analysis, and news or event-related items.

Say Hi To IBUY And Bye To XRT

The best long term investment strategy is one that takes advantage of macro trends. If you are on the right side of a major trend, there is not much you can screw up, as your position(s) have a strong tail wind. One of the biggest and most obvious macro trends for 2017 is the shift in shopper preference from brick-and-mortar to online retail. This trend has been very evident this winter and it appears to be just getting started. I am happy to say that it is possible for investors to play this macro trend with an ETF pairs trade: long the Amplify Online Retail ETF (NASDAQ:IBUY) / short the SPDR S&P Retail ETF (NYSEARCA:XRT).

Before I go any further, I would like to mention that IBUY started trading in Apr 2016 and only has $7.1m Assets Under Management (AUM). I am very surprised that IBUY has not attracted more attention, but I believe that the fund will eventually experience serious inflows as the theme catches on, or as a result of this article going viral, whichever comes first. In any case, the low AUM raises the risk level for this strategy and it may not be suitable for risk-averse investors, or for newbies who are unfamiliar with ETFs.

Read more ...

by Steve Auger