Tactical Update: February 10, 2022 (PREMIUM-UNLOCKED)

The following post was originally issued to TLS members on February 10, 2022.

Resistance is resisting…

As mentioned in this AM’s DSS post, a plethora of stock indices and tickers were encountering key resistance by yesterday’s close. That was the impetus for us selling a number of our remaining long positions — and presumably the impetus for the stock futures pulling back this morning. We also mentioned in the DSS that elsewhere in the market, there have been some constructive technical developments that has us looking for new long positions in those “elsewhere” areas, including MOO, GCC, EWO, IAI, et al. So far this morning, all we have done is buy some Euro exposure back:

  • We bought back a position in the long Euro fund, FXE, near ~105.74
  • *UPDATE: We sold 1/3 of our rare earth fund, REMX, near ~110.00*
  • *UPDATE: After buying it yesterday @ 64.89, we sold 1/4 of our leveraged small-cap fund, TNA, near ~67.12*
    • *UPDATE: We sold another 1/4 of our leveraged small-cap fund, TNA, near ~68.00*
  • *UPDATE: We added another lot to our position in the long Euro fund, FXE, near ~106.49*
  • *UPDATE: We sold the rest of our leveraged small-cap fund, TNA, near ~65.00*
  • *UPDATE: We sold the rest of our large-cap pure growth fund, RPG, near ~186.00*
  • *UPDATE: We added a hedge (short) position in the inverse (short) S&P Mid-Cap 400 fund, MYY, near ~23.89*

*UPDATE: After looking like we’d be able to do some dip-buying this AM, stocks bounced immediately after the open, especially the small-caps. Thus, instead, we have been selling/shorting the rip. As we have been saying, once the small-caps fulfilled their potential further upside, we would get more bearish again — and likely shift to a Bearish short-term outlook. The Russell 2000 is now just a few points from its key technical resistance that we’ve been looking for. Therefore:

  • *UPDATE: We are shifting to Short-Term Outlook to Bearish a/o 11:45 AM CST.

That’s all for now. 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.