Tactical Update: Hard Money (PREMIUM-UNLOCKED)

*The following Premium Post was issued to TLS members at 9:20AM CST on February 23, 2021.*


Risk assets are actually down…but opportunity is up.

We mentioned in this week’s WMMR that the straight up, post-election market environment is likely over and the next phase will require more active risk management. Yesterday and today are examples of that. But while yesterday saw a number of big gainers in our portfolio (that actually finished slightly positive on the day), today is offering few places to hide. So what are we doing into the broader selloff? Well, the newly minted more active risk-management environment doesn’t just mean selling/protecting profits — especially into tumbling prices. Profit-taking is done into rallies which is what we have been doing over the past month. If you are able to do that, you can still buy good relative strength names into dips to support. That’s what we have been doing this AM.

Let’s start with some of our recent purchases in “hot” sectors that finally cooled off, allowing for entry points. Obviously, initial support levels did not hold, leading to tests this morning of subsequent support. But we knew that was a possibility which is why we bought only small, “starter” positions. Today, we added to those positions at subsequent support. Specifically:

  • We added to our position in lithium (LIT) near ~61.
  • We added to our position in clean energy (ICLN) near ~24.50.

After taking profits in crypto in recent days, we also added back to our allocations there:

  • We added to our position in our bitcoin fund (GBTC) near ~45 (near bitcoin ~45,000).
  • We added to our position in our ethereum fund (ETHE) near ~17 (near ethereum ~1400).

There are a plethora of other positions testing support levels. Thus far, here is what we have done:

  • We added to our position in biotech (XBI) near ~148.
  • We added to our position in software (IGV) near ~353.

That’s all for now. As always, stay tuned to our DSS posts for further developments — they provide the most current updates to our investment portfolio and outlook. We touched on many of these potential moves in today’s DSS.

If you’re interested in a daily “all-access” view into our money management approach, please check out our site, The Lyons Share. You can follow our risk-managed investment process and posture every day — including insights into what we’re looking to buy and sell and when. Plus, our Anniversary Sale is going on now!! So it’s a perfect time to join! Thanks for reading!


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.