Tactical Update: August 31, 2023 (PREMIUM-UNLOCKED)

The following Premium post was originally issued to TLS members on August 31, 2023:

Chipping away…

We continue to chip away at our net long exposure into the equity bounce. With the broad averages bouncing to key resistance, we are shifting our Short-Term Outlook to “Bearish”. Sentiment can certainly hit more extreme bullishness, but it already did in July. We would not expect it to hit those levels into this retracement bounce. The next stop for sentiment — and the averages — should be an extreme to the downside. Here’s what we’ve done today:

• We sold our remaining position in the small-cap fund, IWM, near ~190.00
• We sold 1/2 of our position in the homebuilders fund, ITB, near ~86.22 (about 1% exposure now)
• *UPDATE: We added to our hedge (short) position in the inverse S&P 500 fund, SPXS, near ~13.49 (about ~5% short exposure now, with leverage)*
• *UPDATE: We added to our position in the long volatility fund, UVXY, near ~14.49 (about ~1.5% 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.