Tactical Update: Letting The Chips Fall (PREMIUM-UNLOCKED)

*The following Premium Post was issued to TLS members on March 16, 2021.*

Is the tech rebound for real?

Growth and tech shares continue to rebound off of our support levels mentioned about 10 days ago. But is this bounce indicative of a return to leadership? It may happen, and we still have some healthy exposure there if it does. However, it it too early to bestow that title on these stocks just yet. In fact, if the 2-way market is still in effect, this is the area we want to be reducing our exposure to tech and growth as any return to leadership likely won’t be a straight shot. As you know, we did a bunch of that late last week. At this point, we aren’t planning to sell anymore of that exposure — but we are actually looking to add a hedge against it in the near-term. Specifically:

  • We added a hedge/short in the semiconductor space via the inverse semiconductor fund, SOXS, bought near ~10.35.

*UPDATE* We also added the following hedge:

  • We added a hedge/short in the Nasdaq 100 via the inverse NDX fund, QID, bought near ~25.85.

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.


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.