_________
I can feel myself being chopped up in this market. Rather than fight the tape, I am going to raise more cash and possibly redeploy it later today. Thus far, I made the following trades.
(All trades timestamped inside The PPT)
- I sold out of my 1/2 long position in $DECK for a loss.
- I sold out of the rest of my $APKT long for a gain.
- I sold out of my $TZA hedge.
___________
TOTAL PORTFOLIO:
EQUITIES (Including ETF instruments):38%
- LONG: 30% ($LULU $CRM $GMXR $ISH $THOR)
- SHORT/HEDGED: 8% ($TLT $QID)
CASH: 62%
____________
These are posted to be trading ideas only. If you choose to follow me in, I urge you to use stop losses to mitigate your downside risks.
I have been long TNA since last Friday (41.80). Fly does not like the trade, but TNA is holding up very well here. What think You?
We are in a short term very tight range right now–I am inclined to be bullish because everyone is so cautious, but I’ll take the more conservative approach. If you are feeling very aggressive–TNA could be a huge winner here.
Sold a bit more than half of my apkt at 29.60. You could see the stochasticsof both fast and slow a change was coming. I like looking at the 6 month overall for a better swing trade. But with the RSI stlll holding over 55 and for quite some time, I just couldnt sell all. Still holding a bit of SCO as my short and cash is stil king.. Lets see how the day ends…………
yup good eye
Chop chop chop…. and more chop at the EOD…
all this chop and no salad and no suey to boot
So Chess,
What are your reasons for choosing those particular hedges? As opposed, of course, to VXX.
TLT b/c it has been acting very well and the chart (though not entirely reliable for something like that) is great. TZA for small cap exposure, but I sold today b/c I dont want to hold 3X that long. QID b/c if we go down the Nazzy usually falls fast and furious.
I am always looking at VXX, though.
Hmmm, thanks.
Are there any particular situations when you think VXX is a better or worse hedge than an inverse/bear ETF?
Well, the ideal time was when The Fly nailed it in late April. Volatility had been so low for so long and everyone was mocking VXX at the top around 1219 SPX. That is the best time to buy it b/c it is a rocketship, and I prefer it over the inverses at one of those rare inflection points b/c you get the highest returns. Tough to time but The Fly nailed it in his clients and personal accounts.
Also,
When you say you are 8% short/hedged, does that accound for leverage? Does that mean 8% of assets, period?
I.e. a stock that is 2X inverse, if its dollar value is 5% of your portfolio, is in a sense a 10% hedge. Just want to make sure I am reading your allocations accurately.
Good point, Walter. No, I don’t account for leverage, so I am actually more hedged than I appear.
Sorry for the confusion.
Chess,
Can you check out options activity on GMXR and share your thoughts? I’m long but concerned that some big volume took place today all the way out to Feb. and my interpretation is quite bearish. What do you think? Thanks…T.
Yeah, the options are not great. I wouldn’t say deathly bearish, but my bet here was that the stock was stabilizing, although in quite a volatile way. I am pushing my trading rules on this one…we shall see.