One of my core portfolios is the quant, which is selected using the Stocklabs algorithms. I have no input whatsoever other than to update it once per month. For the month of May, the quant is almost all oil and gas stocks, which is extremely rare. I’ve been doing this portfolio for years and have never seen it so unbalanced.
I used to force things, such as allocation and market cap, but then later regretted it due to missing out on big rallies. So far in 2024, the quant is up more than 8% with pretty consistent performance. Let’s see how this oil trade works out.
For my trading, I just moved it into 100% cash, at session highs of +125bps. This is a sufficient daily return and I will reenter later on when volatility increases.
The reason why I like to sell and go to cash is due to the fact that the positions I build for overnight trades, in this case the weekend, were not intended for a longer duration. They’re more or less day trades with a specific goal, unlike my strategic portfolio which is meant for longer durations.
All in all, I like the tape. There isn’t anything about the action to give me pause, aside from my habitual belief that market collapses loom around every corner.
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