| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
SH | Sell | 6,600 | 10.95 | 0 | 0 |
OLED | Buy | 110 | 181.75 | 990 | 3.8 |
After you receive this Alert, we will make the following trades:
-- Sell 6,600 shares of the ProShares Short S&P500 ETF (SH) at or near $10.95. This will close out our market-hedging position, which returned a modest gain near 1.5% since being added to the portfolio earlier this month.
-- Buy 110 shares of Universal Display (OLED) at or near $181.75. Following the trade, OLED shares will account for roughly 3.8% of the portfolio’s assets.
While there are issues in this morning’s October Employment Report, it will solidify the likelihood the Fed will deliver an expected 25-basis point rate cut next week. And that is leading us to remove our market hedge positioning in ProShares S&P500 Short S&P 500 that we added earlier this month. When we made that addition, we said it was a tactical move and likely to be a short-lived holding as we respond to market and data developments.
We will let the proceeds from the SH sale mostly flow back into cash, but also scoop up some additional shares of Universal Display. The pronounced overreaction to the company’s trimmed and likely conservative guidance opened a window of opportunity in the face of continued organic light-emitting diode adoption across multiple markets. Much like our comments on Apple (AAPL) , our focus with OLED remains on adoption rates over the coming quarters, not what may or may not happen over the next few months.
Following these moves our cash levels will be back near 11%, which gives us additional firepower to take advantage of opportunities as we digest the 2024 presidential election outcome.
Coming up we’ll have more detailed comments on the October jobs numbers and thoughts on Amazon’s (AMZN) earnings.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to click on Closed Trade Gain/Loss and toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long SH, OLED, AAPL and AMZN.