Tactical Update: Run For Cover! (PREMIUM-UNLOCKED)

*The following Premium Post was issued to TLS members around 10:30AM CST on March 5, 2021.*

The sudden stock swoon continues — how bad might it get?

Despite what we identified as support levels in several stock indices and sectors yesterday, stocks continue their volatile ways today. That’s not surprising as these types of 2-way markets will be whippy and even overshoot key levels at times, even if temporary. One index that did not reach key support was the Nasdaq 100 — until now. As mentioned in posts yesterday and in this AM’s DSS, we have been looking for about ~12,200 on the NDX and about 297.70 on the QQQ for ultimate support  — and a spot to cover our short/hedge. That level was just tested, therefore:

  • We have covered/sold our Nasdaq 100 hedge/short, QID, near ~35.50

The only remaining hedge (after selling our inverse Russell 2000 hedge, TWM, yesterday near ~16.50) that we have on is 1/2 of our junior gold miners hedge, JDST. We are looking to take that off as well. GLD has held up well today after buying it at ~158.60 yesterday. We mentioned in the DSS that the Dollar Index has upside in the near-term to about ~92.50, which could put further pressure on gold. It is approaching that level now and with gold holding up well, we are likely to remove the rest of JDST somewhere nearby ~13.10 (*UPDATE: we sold the rest of our JDST near ~13.11).

We are also nibbling on a few long positions as they reach support, including IWO, RFG, SMH and XSD.

**UPDATE: Here are the prices we paid today for the above purchases:**

  • Bought IWO near ~291.77
  • Bought RFG near ~199.80
  • Bought SMH near ~218.10
  • Bought XSD near ~169.63

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.

**UPDATE: Today’s moves take us back to an approximate equity net-long position of ~75%…and ~90% including bond, metals and crypto positions.**


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.