Taking a Breather Here…….with update

This morning we are dropping our leverage ratio further to 0.80 on the EMA ETF Fund and the Aggressive Portfolio and to 0.40 on the Conservative Portfolio.  It is not that we see a big break coming here, it is just that we are sitting on good profits.  It is very possible that we could see a knee jerk drop to the 50 day average, 795 on the S&P.  This would be below what we feel is support, but we still look for S&P 1040 by mid August. 

Sometimes it is important to see what it feels like to take the pressure off, if it feels wrong we will be back in at full tilt.  The positions we have sold are the 2X and 3x index ETF’s.  We are still short gold and are holding all long positions in the green energy and bio-tech areas.

Some quick performance numbers here:

                                                     April 2009      2009 to Date      2008

Aggressive Portfolio                       18.7  %                24.5  %         39.3  %

Coanservative Portfolio                 11.9  %                13.8  %         19.7   %

EMA ETF Fund                              19.2  %                10.2  %          NA

S&P Index                                         9.4 %                 – 3.4 %      – 38.5 %

The EMA ETF Fund Nav was 1138 at the close

7:58 AM CDT   

Update at 11:03 AM     We have completed our selling in the current area with the S&P around 871.75.   There is probably a decent chance that the market could run up to the 882 area over the next few days, but once we decided to lighten up, we just did it.

Leave a Reply

Your email address will not be published.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

five × four =