Here we go again...
Weekly down trend just flashed in T-Bond futures / $TYX.
The Dollar has been acting bullish for a while, and it is evident in the weekly uptrend reversing the decline in
UUP
from the late 2022 top that kicked of last week.
If you follow me, you'd know I've been pounding the table on Dollar longs for a couple days now, and here we are, this makes the bullish case for the Dollar more convincing, and my worries for the fate of the uptrend in stocks keeping me in high alert.
As a measure of precaution I've moved back to operating an equal weight long/short portfolio, sourcing ideas fundamentally and technically as per my trading plan I devised in early March this year.
I would suggest doing that or if you hold long term positions, like for example being long term long
SPY
, look into call selling for premium harvesting as a means of reducing volatility in your portfolio and generating extra returns on top, as there is a chance of long term sideways and volatile action in stocks going forward. Check out my Twitter profile for more insights regarding this approach, I tweeted about it today.
If you short bonds here, stop loss area is a bit above 129'12 to be safe, and try not to risk over 1% of your account in the position, alternatively you can use a put spread where you short OTM puts for the duration of this forecasted trend signal vs a long ATM put position. (Sep puts would do)
Best of luck!
Cheers,
Ivan Labrie.
Weekly down trend just flashed in T-Bond futures / $TYX.
The Dollar has been acting bullish for a while, and it is evident in the weekly uptrend reversing the decline in
UUP
from the late 2022 top that kicked of last week.
If you follow me, you'd know I've been pounding the table on Dollar longs for a couple days now, and here we are, this makes the bullish case for the Dollar more convincing, and my worries for the fate of the uptrend in stocks keeping me in high alert.
As a measure of precaution I've moved back to operating an equal weight long/short portfolio, sourcing ideas fundamentally and technically as per my trading plan I devised in early March this year.
I would suggest doing that or if you hold long term positions, like for example being long term long
SPY
, look into call selling for premium harvesting as a means of reducing volatility in your portfolio and generating extra returns on top, as there is a chance of long term sideways and volatile action in stocks going forward. Check out my Twitter profile for more insights regarding this approach, I tweeted about it today. If you short bonds here, stop loss area is a bit above 129'12 to be safe, and try not to risk over 1% of your account in the position, alternatively you can use a put spread where you short OTM puts for the duration of this forecasted trend signal vs a long ATM put position. (Sep puts would do)
Best of luck!
Cheers,
Ivan Labrie.
Comment:
So far, so good...