Hedges are Portfolio Specific.

Mine doesn't look like SPY so I don't need SPY puts!

The index is doing index things.

I am struggling with what to write this morning. I think it is because the portfolio and the index have diverged so much.

For this section of the post, the top chart says everything. But in the portfolio section, really all I need is the Dory “just keep swimming” emoji.

Yesterday, a friend said, “Your chest-thumping, let’s f**king go! tweet was very British and understated.”

I am very proud of the portfolio and this comment. It will drive what I am actually going to write about today.

The system got us out of all this stuff before it became a problem. It got us into stuff that, luckily, has not caused us any problems.

That doesn’t mean it will continue without issues.

Even though I use an overlay to identify tickers with high trending properties, some of them are still IWMy.

A worry for me right now, and a hedge for me, is actually against that mean reversion. A flip in current price action and QQQ outperformance could have a negative impact on my portfolio.

So although many are asking when can I get long SPY/QQQ, a more important question for this portfolio moving forward is should I hedge IWM doing more IWM-type things, i.e., mean reverting.

We have 45 of 47 positions green, with 3 cash positions.

Closed equity = 20.1%

Open equity = 26.2%

Stop loss Drawdown = 20.7%