PORTFOLIO UPDATE: DEEP COVER
During the trading day, I tweeted the following:
After this addition, the portfolios now have a full sized hedge in place with TZA. The reversal that occurred today shifted my short-term trend indicator to sell territory, causing the addition in TZA to take place.
This will likely be an intermediate-term position in the portfolios into April-May time period should the markets travel down the path I am suspecting. That path is one that sees a 5-7 percent correction in the S&P 500 from recent highs. Just enough to get investors on their heels again before a strong second half of the year kicks in.
In any case, as I discussed over the weekend, the most that the bulls may have to look forward to is a choppy, sideways market over the next few months. That is the BEST case scenario.
With this addition of TZA, the hedging in the portfolios is finished. I may trim back one or two under-performing long positions over the next few weeks. March will be a time to reevaluate any new long exposure I am willing to take.
It is a market that deserves a neutral stance, at best, for the foreseeable future. That is how I see it and that is how I am playing it.
As of the close 50% long in WMIH, SPNS, PRXI, MITL, UPIP. 25% long TZA. 25% cash.
