For the week, mega caps crushed small caps, -1.1% v -2.86%. Because of the concentrated nature of my holdings, long stuff like NVDA, I faired worse — down around 3% for the week.
Since mega caps did so well, I am mandated to keep the positions I currently have, save one.
The technical ranking of NVDA plummeted and TXN surged, so I swapped one for the other.
Also, I took 10% of my cash position and added to both GLD/TLT, since they outperformed the SPY by 300-400bps.
In summary, it was a rancid week, one that presided over the destruction of momentumfags. In regards to my current quantitative strategy, there is little cause for concern. I have protective measures in place that were designed to help me outperform during periods of duress. But it’s a process and might take a few weeks of rough sledding to kick in.
When chasing alpha, which is the stated goal of my program, you should expect to live and die by the sword. When markets do well, alpha seekers should do better, and vice versa.
I have to leave now. I wish you the best of luck in your ventures.
On a side note, I was recently stung by a FUCKING WASP, right on the vein in my hand while gardening. When it happened, it was just about the worst pain I’ve ever felt — like an intravenous needle being administered by a FUCKING WASP. It paralyzed my hand and I thought my it was going to explode. But it didn’t and I am now typing with said hand and live to tell the tale.
The Lord blesses us in many different ways, in spite of the fact that he’s a totally fictional character made up by savage barbarians in the days of antiquity.
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