Stay with the Plan

As stated yesterday, we don’t like the oil sector and we believe the stock market has sold off into an area where depending on your portfolio’s bias, covering shorts or getting long is ok.  Our overall position, net position of all four tracking funds, went from 80 percent short to flat yesterday. While the tradional fund ESF went from neutral to 75 percent long, the two short funds are still 75 percent short. 

We will probably do some more buying today, bringing our total net position to a net long, but keep in mind the MACRO TREND is down.  Where could the market rally to, basis the S&P 500 we see 1390 to 1420 as possible objectives.

As far as sectors where we are overweight at the moment, longs in Alternative Energy ETF’s (actually a core position we have held for a long time), yesterday bought a lot of financial ETF’s, and still short some oil ETF’s.

While we rarely talk about bonds, the long bond is getting down to a level where a contrarian play is worth looking at.  Higher short term interest rates and a stronger dollar could push the long bond back up to a test of the 118 area from the current 112 area.

7:36 AM CDT

Leave a Reply

Your email address will not be published. Required fields are marked *

seven − one =