The Scarecrow Trading model managed by Leonard Fox looks for five signals that indicate market exposure and trades leveraged ETFs. This week, Fox added ProShares UltraShort QQQ ETF (QID) to the model. QID’s goal is to provide results equal to 200 percent of the inverse of the NASDAQ-100 Index, an index which represents 100 of the largest non-financial stocks listed on Nasdaq. The fund’s holdings include Nasdaq 100 swaps. On October 26th the fund was trading at a premium to NAV.
Only The Best is a Covestor model managed by Czar Reyes. In the model, Reyes uses a value approach to buying excellent businesses. The model generally holds between 11 and 20 positions and has strict buy and sell guidelines. This month he added Harris Corporation (NYSE: HRS) to the model. HRS is a manufacturer of various broadband, wireless and digital products. The company has a much lower price to earnings ratio than competitors and their sales have grown over the last two years—rising from $5 billion during 2009 to $5.2 billion in 2010. The company’s total liabilities dropped, falling from $2.5 billion in 2009 to $2.4 billion in 2010, and their shareholder equity rose from $1.9 billion in 2009 to $2.2 billion in 2010. It is important to also note that their outstanding shares fell from 131.4 million in 2009 to 127.5 million in 2010. On October 26th the company had a 2.18 percent dividend yield. The company recently announced that they had received $12 million worth of orders for two of their tactical radio systems.