Still Quad 2, I stay invested 100%

We call a Quad 2 for next week, knowing that we are at the brink of a Quad 3 / Quad 0.

Basically, this line needs to hold:

If it does not hold, I will start to protect.

I am still long 85% via my small cap value momentum book and I am not hedged:

+ I am long Apple (10% position, was 20% initially, sold half of it EOD on Friday + was in it profitable intraday the day before, about +1% with a 35% Position) —>

I am willing to take the risk because potential index shorts are pretty bombed out here (for example IWM, etc.). Best thing would be a rally and Quad 2 holds or a rally and Quad 3 / Quad 0 comes (which then would give better opportunities to short the Russel 2000).

Also, so far, the Dollar really helps to mitigate my drawdown (my account is in Dollar, I live in Europe) right now. That “hedge” is always on for me, other than that I do not see the need to hedge further now.

I might short individual names next week offsetting my longs depending on what I see.

Shorts on stocks with bad earnings rate of change are in play —>

All right, have a great weekend.

All the best and best regards.

Andreas

P.S. I started my Wikifolio at the top of the market ;-) Yes, it will be in cash when we hit Quad 3! -2.4% so far (in line with the SPY). I will let it run for a couple of months before I open it, so I get a feel for transaction costs etc.

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