The following post was issued to TLS members on December 7, 2021.
Stocks are ripping higher.
The near-term volatility continues following the “shock” selloff day a few Fridays ago. So far, the market is following the typical roadmap for these periods, i.e., selloff to initial low, retracement rebound, then re-test/new low. Right now, we are in the retracement rebound phase. Thus, after covering much of our short exposure/hedges last Friday, we are selling/re-shorting into this strong bounce. We just executed a flurry of trades, including the following shorts…:
- Added back more exposure to our inverse (short) Russell 2000 hedge, TZA, near ~26.98
- Added back more exposure to our inverse (short) Nasdaq 100 hedge, QID, near ~15.99
- Added back a position in the inverse (short) Dow fund, SDOW, near ~27.75
- Added back a position in the inverse (short) S&P 500 fund, SPXS, near ~17.62
- Added back a position in the inverse (short) Europe fund, EPV, near ~11.69
- Added a position in the inverse (short) financials fund, FAZ, near ~19.19
- *UPDATE: We added to our position in the inverse (short) financials fund, FAZ, near ~18.99*
…and the following sales:
- We sold 1/2 of our mid-cap pure growth fund, RFG, near ~228.51
- We sold 1/2 of our medical devices fund, IHI, near ~63.81
- We sold 1/4 of our transportation fund, IYT, near ~272.66
- We sold the rest of our financials fund, XLF, near ~39.20
- We sold 1/2 of our oil services fund, OIH, near ~194.00
- We sold the rest of our retail fund, XRT, near ~95.50
- We sold 1/2 of our broker-dealer fund, IAI, near ~112.30
- *UPDATE: We sold 1/4 of our software fund, IGV, near ~407.00* (by the way, we are now down to a net-long position of roughly just ~15%…~30% long including non-equity positions)
- *UPDATE: We sold 1/2 of our small-cap pure value fund, RZV, near ~98.22*
- *UPDATE: We sold 1/2 of our internet fund, FDN, near ~230.00*
- *UPDATE: We covered (sold) 1/4 of our inverse 10-year bond fund, PST, near ~16.03*
- *UPDATE: We sold 1/3 of our health care fund, XLV, near ~132.70*
That’s all for now (ya think??) — we will keep you posted on further allocation changes. Check back on this post throughout the day for further portfolio moves. And as always, stay tuned to our DSS posts for further developments — they provide the most current updates to our investment portfolio and outlook.
Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. 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.