Settling In for the start of the Election season next Tuesday…
Our Climate Change Model started pulling Wave 2 Hedges this morning when SPX hit 5444 and finished when SPX hit 5414. For review the WAVE 1 hedges were pulled on August 5, then Wave 2 hedges were placed between August 19 and August 30. Keep in mind our Model attempts to be early so this is not an all clear for the New Highs Bull market, it is just that some of the excess has been wrung out.
With our bias towards Harris the model did on the close start to nibble in the Climate Change stock area, buying 1/3 of our normal positions for RIVN, RUN, QS, QQMG, and BEAM.
Now we can start concentrating on tactical positioning for the election outcome.
As of 10:52 AM this morning with 2/3 of the Model’s 3X short position being lifted we are positioning for a modest probability of a Harris victory. This is being done with a combination of long climate change and small caps stocks plus a small Tech short hedge stock short position.
As the election comes into focus after next week’s debate we will be looking into where the targeted inputs should be focused.
If Trump moves into the lead, we will be thinking about inputs focused on short positions across the board.
If Harris moves into the lead we will looking at net long position inputs with small caps in focus.
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