The storm clouds maybe mounting, but we are battening down the hatches!
Week strategy update.
The economic data came out yesterday, that was billed as the ‘Goldie-Locks’ results. Growth was as expected across the US and inflation were in the sweet spot that hasn’t raised fears of an over-heating economy and all is well and good in the world...
That was however until the news broke about the sacking of Rex Tillerson (Secretary of State, for those that dont keep an eye on the revolving door of the Whitehouse...) This lead to the rule of ‘Close when you can, Not when you have to’.
For the remainder of the week we will be closing trades in a fair amount of our technology sector $AAPL $NVDA $ATVI $PYPL $HUBS $GOOG along with a few of our indices positions as the FED meeting next week count show a curve ball and there are more and more analysts mentioning that there could be four interest hikes coming up instead of the three will have a hit to the markets.
This is were things get a little sideways, we all know that Crypto are going through a very tough patch at the moment and we have seen huge losses. The drawdown on the portfolio has been quite substantial. As it stands we have seen almost 10% wiped off the value of the portfolio this year so far. This would have been far worse if we had held more of our positions open through out the fall.
I have been keeping a very close eye on the technical charts and trying to extrapolate any more falls to $BTC and possibly put on some more SHORT trades to hedge out some of the some of the risk and the exposure to the cryptocurrencies.
I am also thanking all my current copiers and investors for the patience and trust that they have shown in these difficult times and have noted that the losses have been mitigated but the other trades I have been pushing through since the volatility has returned to the markets.
We have reduced our exposure to a fair amount of our holdings with in the stock market in Equities to ‘Buy the Dip’ if the FED announces more hikes than was originally expected.
The sector we will be keeping our current exposure will be the financial sector, as the Volker Rule is currently going under a overview and is expected to be rolled back to free up some breathing room, this should push up the value of the Banks - as long as this announcement is done before the FED report is out, if the banks see an unwind we will buy more holdings into them-. Currently on the books is $BAC Bank of America, $JPM JPMorgan Chase, $GS Goldman Sachs, $USB US Bancorp, $AMP Ameriprise Financial, $BK Bank of New York Mellon and last but not least $FITB Faith Third Bancorp.