What a difference a day makes. We only wrote our weekly reviews of open futures and equity positions yesterday, but it’s fair to say a lot has happened since then. Here’s just a quick update on where we stand.
In the futures portfolio we closed the long Dollar position last night for a small profit (it went up further today), and were left with just 4 positions: long the 30yr, 10yr, and short the Yen, and Gold. Needless to say it was a good day, with the 30yr and 10yr both profitable, climbing back above the highs of last week, and the continued slide in Gold more than making up for the reversal in the Yen.
Long 30yr ($ZB_F) 4/8 +$531.25 per contract
Long 10yr ($ZN_F) 4/5 +$375.00 per contract
Short Japanese Yen ($6J_F) 4/10 -$2,975.00 per contract
Short Gold ($GC_F) 4/5 +$19,370.00 per contract
In our equities portfolio we don’t have any stops for tomorrow, (in fact, we may instead have one new long). Sure, there are some stocks that got hit today, but in most of them we’re riding some pretty big uptrends, and while today’s weakness gives cause for concern, and extra reason to stay vigilant, the evidence so far on a case by case basis suggests they all remain valid. As always, until that changes there’s no need for us to do anything.
I won’t list all the stock holdings here again, but I’ll just quickly show a few that put the move in context, as we have many positions where the stock pulled back to first support, and the real test of whether this is something more may come in the next day or two. The following charts; $GMCR, $HTZ, $ASGN, $RRC, $PKG, all slumped between 5% and 7%, they were our biggest losers on the day and will bear watching for any follow through.
Let’s continue to focus on our process and not make the mistake of listening to dramatic news and market commentary, when price will tell us all we need to know. Remember we’re not trying to eradicate losing trades, they’re part of our system, our job is just to limit their size, not their number. Stay disciplined, stay with the trend.