Software and cloud computing names have strong growth scenarios, says ETF Action's Mike Akins

Summary

ETF Action's Mike Akins highlights under-appreciated catch-up trades for the second half: software/cloud on reset valuations and strong growth, disruptive tech ETF D-TECH for mid/small-cap exposure, emerging markets ex-China with caution on memory, and small/mid-cap quality screens. Later, Jim Cramer recommends adding Delta on the pullback and reiterates ExxonMobil as a long-term hold, while final trades include Vertex Pharmaceuticals and real estate.

• Mike Akins sees software and cloud computing as a catch-up trade after valuations fell while growth remains strong.
• He points to the D-TECH disruptive technology ETF as a way to play mid/small-cap tech that has lagged mega-cap semiconductors.
• Emerging markets ex-China are liked, but he warns about the heavy memory chip weight and suggests alternative weighting or active management.
• Small and mid caps with quality/profitability screens are also favored as multiples are depressed and earnings are expanding.
• Jim Cramer argues Delta is a buy after a 10% weekly drop, trading at 10x earnings with strong free cash flow and a deleveraging balance sheet.
• Cramer calls ExxonMobil a stellar long-term hold that is not dependent on crude oil prices.
• Final trade ideas include Vertex Pharmaceuticals on a product-line-diversifying acquisition and real estate on bottomed valuations.