Strategic Update: August 31, 2022 (PREMIUM-UNLOCKED)

The following post was initially issued to TLS members on August 31:

The long and short of it all…

As mentioned yesterday, after failing at key technical resistance a few weeks ago, stock indices have now pulled back to test major support levels. If the post-June bounce is to be more than a bear market rally, stocks need to hold support here. And even if it was just a bear market rally, indices should at least stabilize near here and attempt to bounce in the near-term. As such, we did shift our Short-Term Outlook to “Bullish” in this AM’s DSS. And, as we’ve posted, we covered much of our short exposure in the past 2 days and started initiating some longs. We continued to add some longs this AM:

• We added a position in the equal-weight S&P 500 fund, RSP, near ~142.18 (~5% exposure)
• We covered (sold) 1/2 of our hedge (short) position in the inverse Russell 2000 fund, TZA, near ~34.00 (now about ~2.5% short exposure there)
• *UPDATE: We added further exposure to our position in the mid-cap fund, MVV, near ~49.99 (now about ~10% exposure)*
• *UPDATE: We covered (sold) the rest of our hedge (short) position in the inverse Russell 2000 fund, TZA, near ~35.05*
• *UPDATE: We added further exposure to our position in the utilities fund, FXU, near ~34.63 (~7.5% exposure now)*

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.

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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.