Jan 30 – Trade Update

Whirlwind of a day yet again.  The SPY/TLT portion was getting pressured quite a bit with the huge fall to about 198.6 (It’s still up quite a bit –> 8-10%). When we had a relief bounce to about 199.5 I reluctantly took some of the SPY portion off to manage risk. Of course, it continues on to 202.4 in A/H and I could have gotten a much better price.  However, I believed it was an appropriate time to remove some of the trade as we were approaching a pretty major support line for the third time, and when things test a third time they usually break. Pretty sure there is  saying “There are no triple bottoms”.  A break would have been quite violent as it burned through stop-losses etc and would have really affected the trade negatively. Either way, it was just a portion and it was appropriate re risk to start removing some.  I took off another 25%.  On Monday, I took about 20% of the trade off and of course, I wished I took it all off but it wasn’t part of the plan. I wanted to remove it in steps to maximize our exit. We can’t predict where the market will go and unfortunately this time it went slightly against us. Again, a messy week (206 to 198.6) and we took a bit of a hit on the profitability of the trade.  Not bad considering the volatile month but you always end up comparing results to your all time highs for the trade and that is just useless.

Our standard protector portfolios are going as expected. Down about .5 to .6% or so. Completely normal given the market conditions.

Our alpha portion is lagging the standard by quite a bit (-3% or so).  2 out of 30 equities are causing the majority of the pain (OCN and QCOM). I’ve got four parts of alpha one being a 13F clone and that portion is doing terribly while the other 3 are doing well and beating the index. As I mentioned before, I am replacing the 13F portion with ALFA which does a much much better job (100+ equities) and is managed by a great firm.  A lot less volatility.

Our momentum portfolio continues to outperform and literally is crushing. It’s got to be up close to 6-7%.

 

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