Not a market for investors, but remains a great trading market for balancing risk with the use of SQQQ and TZA. We’ve just closed out this latest round of hedging and will watch and wait for a bounce to emerge in the indices before we’ll likely have another go round with our hedges.
The markets are being led down by the Nasdaq and Small Caps which were the leaders in 2013 but I do wonder how long the S&P 500 can hold up. The strength in large caps is promising as we suspect that mid and large caps will emerge as the new leadership.
As a reflection of our anticipation of mid and large cap dominance going forward we continue to liquidate what few small caps we have. While we have no intention of abandoning small caps completely they will be a much smaller percentage of assets going forward.
With thanks to our development partners in London we will begin to slowly integrate our mid and large cap systems into specific client portfolios during future market weakness. Our first and so far only addition was made this morning with purchases of Automated Data Processing ADP.
Be careful out there
Brad
Long ADP