This will be a short update due to the lack of activity in the swing-trading portfolio this past week and and the fact that it was a holiday week.
Basically we had two trades: SPXU on Monday and TLT to close out the week on Thursday. And really SPXU was the only trade to be had. TLT is one of those trades that unless there is a major sell-off in the bonds in the coming days, we can probably hold on to TLT for a while, and have a small hedge in the portfolio.
Going into this week, my focus will be on the long side. That doesn’t mean we can’t find ourselves net short at some point, but based on the market’s current personality and the fact that we finally saw a week where the market managed to sell-off, yes we are overbought still, but the market is showing a willingness to run higher despite these conditions and a three pullback could be all the market needs to keep the momentum going.
Last week saw a three day pullback and now will be looking to challenge the downtrend off of the November highs. I’ll be looking to add 1-2 new positions on Monday, and if the market can remain fairly bullish throughout the week, I’ll be looking to get as much as 50-60% long by week’s end.
