Low Hanging Fruit

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All jokes and threats against your person aside, I am off to a great year, up more than 31.5%– with hardly any big winners. I’ve been playing small ball all year, cutting losses at 5-10%, and booking gains at 7-15%. On a few occasions, I’ve had 20% winners, but not too many. My win ratio has been very high and my allocation superb. My longer term gains are up much more than my trades, such as SLCA, HAR, PANW, BX, HCA just to name a few.

Which begs the question:

Why bother trading at all?

For one, it’s fun to explore new ideas and be on a conquest for greatness. Even if I never accomplish the great find of a lifetime, I am sure to have fun trying. That’s what this is all about, isn’t it? We can hem and haw all we want about outperforming the SPY and catching nice trades. But, condense it all, and what we really want are life altering gains, which is why I built Exodus and why we keep adding functionality to it, in order to give us an edge in a fast pace world.

Up so much for the year, in the middle of June, I’ve opted for a conservative approach, via XLU and GDX positions. They are #1 and #2 in position size and I am only looking for 5-8% on them, nothing too dramatic. I consider them to be ‘low hanging fruit’ and I intend to eat them.

The Fed is accommodative. Yields should come in; and when they do, rate sensitive stocks–like XLU–should recover. Gold is a your typical inflation trade, something central banks have been trying and failing to create for several decades now. Talk all you want about fiat currency and how runaway inflation will eventually lead to its demise. I’ve yet to see evidence in first world countries of inflation being something even remotely troublesome, let alone possible.

Top momo idea: QLYS