Year End Trading Strategies to Consider Now

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As 2019 draws to a close in just a few weeks, we wanted to look at some year-end strategies.

The Dogs of the Dow

With the Dogs of the Dow, you buy the highest yielding Dow stocks that fell out of favor by the start of the New Year. You invest an equal amount in each, and cash out by year-end.

Historically it’s done very well.

In 2013, the Dogs were up an average of 35%. In 2014, they returned 10.8%. In 2015, they returned 2.6%. In 2016, the Dogs returned 16% on average. In 2017, the Dogs of the Dow returned 19% for the year. In 2018, the Dogs returned 1% — which still beat the Dow.

While we don’t have the 2020 Dogs just yet, stay tuned for that list by the close of December.

New Year’s Resolutions

We all make resolutions at the end of the year.

Unfortunately, they don’t always go as planned – the weight loss goals, the idea we’ll go to the gym more often, and make a concerted effort. About 90% of us make a resolution to lose weight, diet, and exercise more, which doesn’t always work out so well. However, while the resolutions may not work out, related stocks have tended to push higher. Look at Planet Fitness (PLNT) for example. For years, the stock has exploded late in the year.

 

The Holiday Shopping Season Rally

One of the best ways to trade most holiday seasons is to buy Amazon.com (AMZN).

Typically, we’ve seen AMZN rise significantly prior to the big holiday shopping rush.

That’s because more people shop online these days.  Plus, we have to keep in mind that e-commerce is only set to explode even more. 

Here’s what we still hold, long-term: 

NVIDIA (NVDA) stock — $196.55 

NVDA is now up to $211.16, and is on hold. 

AbbVie Inc. (ABBV) stock – $74.55 

ABBV last traded at $82.07. Hold. 

Pfizer (PFE) stock – $36.05

PFE January 17, 2020 36 calls — $1.60 – exited half 

PFE last traded at $37.72, and is also pushing higher.  We have a $40 target price. 

Glu Mobile (GLUU) – $5.46 

GLUU now trades at $6 and remains on hold. 

Etsy Inc. (ETSY) – $54.76

ETSY now trades at $44.06.  We exited the calls already.

Metlife (MET) stock – $45.76

MET November 15, 2019 45 calls – $2.52 – exit second half 

MET last traded at $48.30.  Hold the stock, but exit the calls which now trade at $3.35. 

DB Gold Short ETN (DZZ) – $4.96 

We are continuing to hold DZZ as a hedge.

The VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) — $14.50

REMX is still a buy with China’s rare earth threats still on the table.  REMX is at $12.93 

Devon Energy (DVN) stock – $32.93 

We continue to hold oversold shares of Devon.  It last traded at $23. 

Ceragon Networks (CRNT) – $3.90

Boingo Wireless (WIFI) – $32.04

Zayo Group (ZAYO) — $34.42

All are long-term holds as the 5G revolution just begins to pick up momentum.  CRNT now traded at $2. WIFI is now at $10. ZAYO now trades at $34.22.  Hold all. 

ETFMG Alternative Harvest ETF (MJ) — $32.30 – exited half

Kush Bottles (KSHB) — $7.85

MedMen Enterprises (MMNFF) — $4.30
Canopy Growth (CGC) — $51.55
 

Cannabis stocks have pulled back considerably, but all remain on hold at this time.  Earnings hiccups and warnings aside, there is still plenty to be excited about with more U.S. state approvals, Canada’s move to legalize more CBD products this week, and the fact that cannabis legalization could see the light of day from the 2020 presidential election.  Hold.

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