The H.E.A.T. Formula
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The H.E.A.T. Formula is a radically different way to look at investing your portfolio.
H- Hedges, you should always have hedges and be agnostic as to being long or short. Bonds are not a hedge
E-Edges, you should always look for edges. Preferably these are edges with some sort of psychological underpinning, structural edges, or some sort of barrier to entry.
A-Asymmetric. Everything you do, be it trades or your overall portfolio, should be designed so that heads you win a lot, tails you lose a little.
T-Themes. You should always be invested in the top themes. Most everything else is just noise.
We will continue to build out our resources here to help. In the meantime we have a model Hedges and Edges ETF portfolio.
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I continue to believe that this market comes down to five guys--Musk, Trump, Huang, Saylor, and Powell. Today Powell is being interviewed...
Fed’s Powell Is Speaking Today in Last Chance to Signal Next Move on Rates-Barron's
Powell will be interviewed by Andrew Ross Sorkin at the New York Times DealBook Summit on Wednesday, beginning at 1:40 p.m. Eastern. That will give investors another look at his views before a quiet period ahead of the Federal Open Market Committee’s Dec. 17-18 meeting begins on Saturday.
Besides this not a lot going on, appears that the market wants to melt up from here. I did buy some VIX calls as I talked about yesterday, but that's just a short term hedge based on VIX being oversold....
Natural gas is one of my favorite themes and I added NFE to my watchlist yesterday. Have traded this name before but wasn't on my radar screen for some reason. Thank you Jeremy Vreeland for pointing it out....
Gold and silver miners popped yesterday. This continues to be one of my favorite areas at the moment. I added AEM...
Really not seeing much else attractive on the long side. A lot of my watchlist names, which encompass the major themes I am watching, are curling downwards. That means eventually I may have some good spots to buy or add.
On the short side I continue to look at high fliers that break key support. Yesterday I added CWAN...
And OWL....
Watching RKLB today...
