$1,535,280!
That is up a lovely $48,402 from our November Review for, which is very nice for a month we played very cautiously, We're up 155% for the year in our paired portfolios (LTP/STP) but the STP is, at the moment, down 42.5% as the market has been all uphill since we rebooted our hedging portfolio on October 28th.
We reviewed the Long-Term Portfolio in yesterday's Morning Report. Well, not a review as we didn't change anything but, at the moment, I'm not inclined to. The market keeps rising and our long positions are doing extemely well so now it's time to put some of that $48,402 in profits to work adjusting the protective hedges in our Short-Term Portfolio. This locks in the gains of the LTP and allows us to leave those positions in play – even though we are unsure the rally will keep going. We've been nervous since September – the hedges are what let us keep participating in the upside – they are the cost of insurance.
Short-Term Portfolio Review (STP): $114,960 is down $76,885 from our Nov 18th Review but the gains in the LTP more than made up for it. As noted yesterday, we cut about 1/3 of our LTP long positions on 11/17 and that left us leaning much more bearish – now we are too bearish if the market keeps going higher but we do have tons of cash in the LTP ($800,000) to deploy on longs. Meanwhile, we'll maintian our hedges over the holidays – just in case.
- FXP – This is our new hedge on China (ultra-short) maybe not being as strong as people think. It's alreay up so that's a good sign for us – not so much for China….
- TQQQ – Still has that new trade smell. In this case, we are shorting the ultra-long ETF for the Nasdaq as we think the Nasdaq is toppy and the 3x Ultras tend to decay over time so we think this could be a nice winner – even if the market
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