Throwback Thursday – Delta Variant Sends Many Countries back to Lockdowns thestreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreet.com Daily Mail and Mail on Sunday newspapers.
Mid May Market Movement â Still Churning at the Same Levels
Here we are again.
Back on May 3rd, our self-explanatory headline for the Morning Report was:
Monday Market Movement – Dow 34,000, S&P 4,200, Nasdaq 13,900 – Again and, this morning, we re at 34,346, 4,169 and 13,385 respectively. The Dow is up 1%, S&P flat and the Nasdaq is down 3.7% respectively. The Dollars those indexes are priced in, however, have lost 1.5% of their buying power during the same two weeks as our currency is teetering on the cliff of the May lows.
This is the stealthy way the market can take your money when you don t realize it – especially in an inflationary environment - so we need to keep on our toes. For example, I could have traded a $32 shares of AT&T (T) for 10 gallons of Gasoline (/RB) on May 3rd but now I d be lucky to get 9 gallons for the same share. I would have needed 55 shares of T to trade for an ounce of gold at $1,760 but now I need 58.33 shares at $1,867.
TGIF â Hedging for Disaster with our Short-Term Portfolio Review
Aren t you glad we added hedges last week?
Author:
Aren t you glad we added hedges last week?
We did a review of our Short-Term Portfolio last week and our timing was excellent as this has been a rough week for the markets but we were able to relax as our STP bumped up from $245,485 to $281,128 as of yesterday s close, gaining $35,643 (14.5%) for the week. Meanwhile, our Long-Term Portfolio (LTP) positions, which the STP is designed to protect, are down $79,067 (4%)
since our April 16th review, so our STP is mitigating about 1/2 of the damages – as it s designed to. Of course the STP kicks in a bit harder between a 10-20% drop but no real signs of that so far as we re bouncing nicely this week after a 7% drop in the Nasdaq (more on that later).
Forward-Looking Friday â Are We Hedged Enough?
$1,862,265!
$1,862,265!
That s a gain of $95,674 since our February Review for our paired Long & Short-Term Portfolios. Our LTP is predominantly bullish and the STP is where we keep our hedges – as they tend to need adjusting more often – as you are about to see. Interestingly, despite the rally, the Short-Term Portfolio gained $40,000 – mostly due to our very well-timed short play on Tesla (TSLA)
, which we just cashed in last week. One of the reasons we cashed it in is we now have $97,098 in cash to deploy so it s a great time to add to our hedges:
13,000 Thursday â Nasdaq in Critical Territory
13,146. That s the 50-day moving average on the Nasdaq that we need to cross back over by tomorrow or it s likely the Nasdaq continues to correct back to the 200-day moving average at 11,721, which would be 10% down from where it is now.
Author:
Mar 11, 2021
13,146. That s the 50-day moving average on the Nasdaq that we need to cross back over by tomorrow or it s likely the Nasdaq continues to correct back to the 200-day moving average at 11,721, which would be 10% down from where it is now.
13,146.
That s the 50-day moving average on the Nasdaq that we need to cross back over by tomorrow or it s likely the Nasdaq continues to correct back to the 200-day moving average at 11,721, which would be 10% down from where it is now. Since we know the Nasdaq is ridiculously over-valued, the 10% down scenario is a lot more likely than the resume the rally scenario.