Last week the portfolio saw an increase in equity (1.74%) while being hedged. The MOM system added past momentum losers to the portfolio. They are going to be sold with a good profit this week. Hence three new stocks will be added ( WFM, STX and NUAN). In case of RIMM I did a Twitter update (link) and announced a 50% position close last week. I intend to take profits only during bear markets. Make sure you follow my tweets (link). However I don’t count that into this week’s portfolio performance.

The market (SPY) is overbought on short as well as intermediate-term levels. I will enter the week with a hedge (TLT and SH). As written last week: “…I’m scaling into the positions (SH) with 3 equal sized trades (would like to see SPY intermediate conditions turning from oversold into somewhat overbought given the bullish seasonality)”. A reader made aware of a potentially better hedge than the inverse SP500 ETF: SH. The ETF goes by the symbol HDGE and is designed for hedging portfolios. HDGE is an actively managed ETF and therefore carries a higher total expense ratio.

Portfolio profile

  • Cash 2%
  • Commodities 0%
  • Stocks (long) 65%
  • Stocks (short) 16%
  • Treasuries 17%

About Portfolio Trader

Read more about Portfolio Trader here (link). Past trades can be found here (link). This page will be updated as trades have been closed.

Disclaimer

These are the trades I’m going to take for the coming week. In case you consider mirroring my trades make sure you do your own homework upfront in order to match your personal risk profile (no investment advice). Performance data quoted represents past performance. Past performance is no guarantee of how the portfolio is going to perform in the future.