Updating Our Portfolio Table and Shopping List

As we close out October, a month that as we write this has the S&P 500 down almost 1.5% and the Nasdaq Composite down roughly 6.0%, we recognize that more than a few folks are ready to move on to November. As we noted in our Amazon (AMZN) earnings note today, when November trading starts next week, in addition to another round of earnings, including Apple (AAPL) and Palantir (PLTR) we also have the following:

Monday, November 2: ISM Manufacturing Index (October) and the Prices component

Tuesday, November 3: Midterm elections

Wednesday, November 4: ISM Services PMI (October) and the Prices component

Because of the continued climb in energy prices, and a growing number of companies discussing pricing action, we do not see a meaningful downtick in ISM’s pricing figures for October. Rather, we would not be surprised to see them move higher, leading to thinking the Fed may need to do more.

As far as the midterms go, the data collected by Kalshi points to a blue wave with Democrats taking both the Senate and the House. But we’ve seen reality surprise compared to polling data, and that means we’ll want to assess the outcome and what the likely impact is on policy. Gridlock in Washington tends to be a good friend for Mr. Market.

With those things said, as we fine tune our shopping list, while we won’t rule out any actions early in the week, odds are we’ll look to at least get through those next few days and let the market absorb things. And because we know many of you will want to know what is on our updated shopping list, here it is. These are listed alphabetically, not in order of importance.

Alphabet (GOOGL)

Amazon (AMZN)

Eaton (ETN)

Meta (META)

Microsoft (MSFT)

ROBO Global Robotics & Automation Index ETF (ROBO)

Marvell (MRVL) shares could also make it onto that list, but the determining factors, as we discussed yesterday, are if a deal goes through for Lumentum (LITE), and if so, at what price?

Two stocks that are not on the shopping list are Broadcom (AVGO) and the Health Care Select Sector SPDR Fund (XLV). With AVGO, the Portfolio’s position is the largest among its chip holdings, but if there is no Marvell-Lumentum deal, odds are AVGO shares move higher on that news. As far as XLV, the current relative strength index (RSI) level has the shares overbought, and if our position size was larger and the market mood different than it is currently, we’d look to trim that position.

If the scenario we discussed in our Amazon earnings note plays out as we suspect it will, we’ll have an opportunity to pick up more XLV shares at better prices in the coming weeks.

A few items on the table below. It does lack the usual pick-up points and that is because we are going to take another look at those levels given what’s developed in the market this week. Second, we see Google shares are below their checkpoint level, but they are also on our shopping list and in that same Amazon earnings note we noted the support level we are eyeballing.

The same goes for ETN while for Boeing (BA), we’ve already laid out what our next likely course of action is given our Three rating, which is why we’ve removed that Checkpoint level.

And if you look at the Portfolio’s holdings page, you’ll note a few positions are creeping toward 4.5% position sizes. We’ll continue to track their progress on that front, and if some prudent and profitable portfolio management is called for, we’ll be sure to act.

Our goal is to provide another version of the table below with refreshed pick-up points early in the week.

More Pro Portfolio:

At the time of publication, TheStreet Pro Portfolio was long AAPL, AMZN, AVGO, BA, ETN, GOOGL, META, MRVL, MSFT, PLTR, ROBO, and XLV.