Strategic Update: Time To Tai-wan On? (PREMIUM-UNLOCKED)

The following post was issued to TLS members on May 12, 2021.

The selloff is creating opportunities — around the world.

The selloff continues today across much of the stock market. With that said, there are still several pockets of strength, e.g., energy, financials, cryptos, etc. Additionally, our newly added semiconductor hedge, SOXS, is greatly aiding our cause. Given those good performers, our portfolio, which is net-long roughly ~45%, is actually up on the day at last check despite the sharply down tape. As mentioned in today’s DSS, we will look to cover (sell) half of the SOXS if the SOX Semiconductor Index tests down near ~2830 or the SMH ETF tests down near ~220.

Additionally, the sell-off is creating, or will soon create, opportunities to BTD (Buy The Dip). As you know, we do not expect a major top or bear market just yet, so we are still happy to BTD in this 2-way market in good relative strength positions at good support levels. One such potential opportunity is occurring now in our Taiwan ETF, EWT. After taking from profits in the position in recent months, we are re-deploying some cash back into it. As stated in today’s DSS:

  • We are adding back exposure to our Taiwan position, EWT, near ~57.00.

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.


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.