Same old, same old…
We’re at the same levels we were at on Tuesday (a bit weaker), when we extensively went over the technicals, so we’re not going to do that again. As you can see on the S&P chart, our short at 2,728 on the S&P Futures (/ES) is still holding up and we see no reason to change it today or over the weekend. Similarly, our big shorting hedge on the Nasdaq (/NQ) is still up $2,000 per contract (from 7,000) at 6,900 and our predicted bottom is a $10,000 per contract gain at 6,500 if “sell in May” becomes a thing around the holiday weekend.
We primarily use the Futures for hedges as we are generally bullish in our 5 Member Portfolios and that means we like to have a little extra protection – especially when the broad market is shut down and we can’t make any adjustments. We’re very happy with the portfolio performance so far this year and, in fact, we’re too happy so, as we’ve been discussing in our recent Morning Reports as well as our weekly Live Trading Webinars, I think it would be far wiser to go to CASH!!! into the summer and we’ll see if July earnings make us want to buy again.
We’re not officially doing that because PSW is a teaching site so we teach people how to manage portfolios in good markets and bad but CASH!!! is a very valid strategy and allows you to take a nice vacation and have a life – those are good things! Personally, our Hedge Fund is over 90% in cash and my kids’ college accounts are 100% in cash into the summer – but you can play the market any way you want!
One portfolio that we make available to the general public is our Money Talk Portfolio, where every trade idea is announced live on the show and we make no adjustments other than on those appearances. I haven’t been on since Feb 1st but, even so, the trade ideas in this ultra low-touch portfolio are already up 73.4% since September – not bad for 8 months and only a few adjustments.