That is what the hedge is for...

High beta loosing steam!

Tough day yesterday!

Still (but only with the dollar!) I managed to print a flat day.

IWM short worked very well, Dollar printed a strong day against the Euro, and GBTC long did not loose with other high beta exposures.

Port was down about half a percent (without the positive dollar effect).

Not bad!

I was bullish from around 16th to 18th until yesterday. Now I am neutral. My hedge (short on IWM) stayed on the whole way.

The action yesterday was not good:

·        Semis monster weak

·        ARKK printed a very weak day, mid cap high beta look weak again.

·        Relative Strength at high beta big cap growth compounders are still very strong, but as we now, they turn last.

·        Breakouts plays not working (VTNR, BTU etc.)

·        Too much up too fast, just look at the chart of TSLA and you know what I mean…

I will reduce risk here:

What is clear, that the small cap value tech names I added mid-March are not working, so I will sell them (10 names, about 100k). So the call was great, but the execution was bad.

Not sure, what I will do with GBTC yet, but what is sure, that I will sell as soon my entry price from last friday morning is hit. It shows great relative strength, so I will give it some room.

Also, if we get a 1–2-day rally here and ARKK is behaving weak, this would be a great point to add a small short (e.g. a long on SARK) on it.

Port will look like this after the changes:

Long 500k Small cap value momentum, short IWM 250k. Long GBTC 85k with a tight entry-based stop.

Well, well, what a difference a day makes…

Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.