2017 Year in Review – Investment Ideas

By: TradeSmith Research Team

Jan 05, 2018 | Investing Strategies

2017 was a landmark year for TradeStops members. We introduced more high-level portfolio management tools, and we shared great investment ideas with you every Friday afternoon.

Last Friday, we took a look back at the new TradeStops tools and strategies we introduced in 2017. Today, we’ll take a quick look at the highlights of the investment ideas we presented on those Friday afternoons.

The Data

By the way, if we were an investment newsletter, our percentage of winning trades would have been 92.5%!

Our first investment idea in January was a bullish signal in the healthcare sector. XLV, the ETF for the healthcare sector, is up almost 21% for the year, outpacing the S&P 500 – with a beta that is 15% less than the S&P.

XLV, the ETF for the Healthcare Sector up 21% Since January

In March, gold had dropped 8 days in a row and was on its way to a 9th day of losses. We showed you that this had only happened seven times since 1973, and three months later, gold was an average of 4% higher.

What happened this time?

Gold rose more than 5% in the following three months and today is now almost 10% higher.

Gold dropped 8 days in a row in March eventually ending up 10%

In July, we reiterated our bullish case for oil. We had been bullish all year, but realized patience was the key for this trade. We’ve been nicely rewarded for our patience. Oil was below $50 when we wrote this and is now close to 25% higher in just 5 months.

Bullish case for oil pans out – oil is 26% higher after 5 months

In September, we published our first article about bitcoin. In Bullish on Bitcoin, we showed how the TradeStops tools could be applied to bitcoin with incredible success. Here’s the bitcoin SSI chart that we presented.

Bitcoin SSI chart

We told you that each time, since 2012, bitcoin rose from the SSI Yellow Zone back into the SSI Green Zone turned out to be a great entry point.

Date Maximum Gain Entry VQ
8/20/2012 2480.50% 70.27%
7/2/2013 1221.59% Green
12/26/2013 33.20% 70.67%
8/4/2016 97.85% 38%
1/17/2017 49.01% 36.44%
3/20/2017 187.66% 36.41%
7/18/2017 109.00% 39.05%
Average 596.97%

And it happened again. After rising above $3,300 and back into the SSI Green Zone, bitcoin exploded almost 500% higher to a new high in December 2017, matching the average gain since 2012.

Bitcoin up almost 500% in late December

Here’s the list of all trading ideas we presented in 2017 with a link to each article. Some of these were follow-ups to the original trading ideas we published earlier when we thought it was still worthwhile to revisit the initial idea.

Trading Ideas

Symbol Name Current
SSI
VQ Article
Dates
Adj. Entry
Price
Gain
w/Div
XLV SPDR Health Sector ETF Green 11.63% 1/6/17 $69.88 20.97%
GLD SPDR Gold ETF Green 10.57% 1/13/17 $114.21 9.85%
UUP Powershares Dollar Bullish ETF Green 6.30% 1/20/17 $26.03 8.73%
EWZ iShares Brazil ETF Green 27.37% 1/27/17 $37.12 14.42%
GLD SPDR Gold ETF Green 10.57% 2/3/17 $116.13 8.03%
TIP iShares TIPS ETF Green 5.00% 2/24/17 $113.32 0.55%
DJIA Dow Jones Industrial Average Green 8.83% 3/3/17 $21,005.71 19.37%
GLD SPDR Gold ETF Green 10.57% 3/10/17 $114.72 9.50%
TIP iShares TIPS ETF Green 5.00% 3/17/17 $112.19 1.56%
IEV iShares Europe ETF Green 11.97% 3/24/17 $40.70 18.66%
GLD SPDR Gold ETF Green 10.57% 3/31/17 $118.72 5.68%
$WTIC WTI Crude Oil Green 31.36% 4/7/17 $52.24 18.70%
GLD SPDR Gold ETF Green 10.57% 4/14/17 $122.60 2.33%
XBI SPDR S&P BIOTECH ETF Green 26.87% 4/28/17 $71.27 22.57%
GLD SPDR Gold ETF Green 10.57% 5/5/17 $117.01 7.22%
EEM iShares Emerging Markets ETF Green 15.18% 5/12/17 $40.42 20.52%
EWZ iShares Brazil ETF Green 27.37% 5/19/17 $34.36 23.62%
XLF SPDR Financial Sector ETF Green 13.65% 6/2/17 $23.16 22.35%
GLD SPDR Gold ETF Green 10.57% 6/9/17 $120.54 4.08%
XBI SPDR S&P BIOTECH ETF Green 26.87% 6/23/17 $80.24 8.86%
JJC iPath Copper ETN Green 18.56% 6/30/17 $30.77 20.90%
GLD SPDR Gold ETF Green 10.57% 7/14/17 $116.77 7.44%
FXA CurrencyShares Aussie Dollar ETF Red 8.46% 7/21/17 $78.93 -0.32%
$WTIC WTI Crude Oil Green 31.36% 7/28/17 $49.71 24.74%
SPY SPDR S&P500 ETF Green 9.68% 8/11/17 $241.68 12.38%
GLD SPDR Gold ETF Green 10.57% 8/18/17 $122.30 2.58%
JO iPath Coffee ETN Red 24.86% 8/25/17 $17.11 -5.08%
BTC/USD Bitcoin Green 41.60% 9/1/17 $3,613.22 320.44%
$WTIC WTI Crude Oil Green 31.36% 9/15/17 $49.89 24.29%
GLD SPDR Gold ETF Green 10.57% 10/6/17 $121.09 3.61%
EEM iShares Emerging Markets ETF Green 15.18% 10/20/17 $45.57 6.89%
SPY SPDR S&P500 ETF Green 9.68% 10/27/17 $256.40 5.93%
XLE SPDR Energy Sector ETF Green 17.55% 11/3/17 $68.23 9.93%
XLP SPDR Consumer Staples Sector ETF Green 8.99% 11/10/17 $53.88 5.20%
XLI SPDR Industrial Sector ETF Green 10.51% 11/17/17 $70.12 9.94%
XLF SPDR Financial Sector ETF Green 13.65% 11/17/17 $26.04 8.80%
XLK SPDR Technology Sector ETF Green 11.59% 11/17/17 $63.11 3.95%
EEM iShares Emerging Markets ETF Green 15.18% 11/24/17 $47.00 3.64%
IEF iShares 7-10 Yr. T-Note ETF Green 5.00% 12/15/17 $105.95 -0.64%
XME SPDR S&P Mining ETF Green 26.48% 12/22/17 $35.55 6.05%
Average: 17.96%

The gain/loss for each trade is based on the closing price on 1/4/2018.

The Takeaway

If we were a newsletter, and these were actual recommendations, we would have finished the year with 92.5% winning trades. The winning trades had an average gain of +19.6%, and the losing trades had an average loss of only  -2.0%.

And if these were actual trades, we would always use our proprietary Stock State Indicator (SSI) Stop signal to exit the trades.

Currently, all of the trades except for one are still in the SSI Green Zone. That’s 21 out of 22 positions, or more than 95%, still trending higher.

We had a great 2017 and are looking forward to bringing you more successful investment ideas in 2018. We’re already beginning 2018 with the introduction of the world’s only tools to track and trade cryptocurrencies based on signals, not noise.

There’s still time to become a charter member. You can find out more information here.

Looking forward to a prosperous 2018.

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