Special Report: Ukrai-ziness! (FREE PREMIUM LOOK)
This is a FREE look at a real-time special report sent this AM to TLS members updating our investment strategy in light of the many geopolitical headlines. Importantly, we lay out a number of markets and securities hitting actionable junctures right now. Send us a note if you’re interested in becoming a member and we’ll be happy to offer you a 20% discount on an Annual Membership right now.
News headlines are wreaking volatility on the markets — and playing right into our investment game plan.
The news headlines this week have been, well, bonkers. Fortunately, the accompanied volatility in the markets is thus far playing right into our investment strategy. Last week, we mentioned that our intermediate-term Risk Model turned back Positive (barely). Thus, while we continue to be fairly pessimistic in the longer-term, we are open to the possibility of one more push to new highs in the large-cap indices — even if temporary. Therefore, we have viewed the risk/reward opportunity of buying a dip (for a trade) to support in select equity areas to be favorable. We are testing such areas now (see below).
At the same time, following our “Buy The Dip” call from a few weeks ago in the safe haven assets, e.g., bonds, gold, gold miners, silver, etc., such assets have responded exquisitely. Presently, while we maintain a bullish view overall on these assets, they are now reaching key near-term retracement levels of their recent dips. Therefore, some profit-taking of the recently acquired portion of these assets may be in order here (see below).
Lastly, we haven’t covered bitcoin every day, or even every week — or even every month, for that matter — because, well, there hasn’t been much to talk about. We like to ignore the noise and discuss markets only when we see opportunity. And while bitcoin may have more consolidation to undergo in the longer-term, it is testing a spot that may produce a near-term bounce in the cryptocurrency (see below).
HERE’S WHAT WE ARE DOING, OR LOOKING TO DO, NOW AND WHERE:
- Covering Shorts/Hedges:
- Value Line Geometric Composite: ~517-520
- Russell 2000: ~1520-1535
- Mid-Cap 400: ~1915-1920
- Buying The Dip (in smaller lots and for a trade):
- S&P 500: ~2945-2957
- Dow Jones Industrial Average: ~26,550-26,775
- Nasdaq 100: ~7590-7740
- XLK: ~79.40-79.80
- XSD: ~89.90-91.15
- Bitcoin: ~8350-8520
- Taking SOME Profits (of recently added positions, e.g., from Sep 13):
- 10-Year Yield: ~1.61
- 30-Year Yield: ~2.09
- TLT: ~142.78-144.17
- AGG: ~113.35
- LQD: ~127.65
- GLD: ~144.18-144.50
- SLV: ~17.32-17.55
- GDX: ~29.30-29.50
FYI, all of these ideas have been covered extensively in recent Daily Strategy Sessions. As always, stay tuned to DSS posts for further developments.
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Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.