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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Our Next Webinar will be January 23,2025 at 2pm EST.
How to Make Money In Markets During 4 Years of Trump
-Three Major Investment Themes Nobody is Talking About
-Why Crypto is a Must Own and How to Trade it With Asymmetric Risk
-Three ETFs That You Want to Almost Always Be Short
-Dangers of Covered Call ETFs and a Better Approach
Register Below:
https://attendee.gotowebinar.com/register/980141392770803292
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Days like yesterday are why you should always have hedges in place. With everyone talking about how the market was overbought it seems like yesterday could have been a bit of an overreaction. Typically, the day after a Fed day is where you really get a sense of where the market wants to go. So far, green in the futures, now the question becomes do people who wanted to get out sell the open, or do we retrace some of the move? The Friday PCE numbers now become a bigger deal.
If anything would be a concern for me today, it's MU. They disappointed last night and are coming very close to the August/September lows....
Looks like AI wasn't the issue though. This could be buyable if $85 holds....
Micron’s stock skids as AI momentum doesn’t make up for pressures elsewhere-MarketWatch
The memory-chip company cites weakness in consumer-facing markets but momentum in higher-margin areas and those levered to AI
On the major indices, look for either a short sale on SPY as it continues below it's 50 day, or an undercut and rally there.....
TLT could end up being a buy here if it can break back above $89. Wouldn't short it at this point, the time to have done that is at the 200 day.....
I think today is a day where you pull out your shopping list of names and look for potential spots to enter, and maybe take some profits on your shorts. However, anyone who fondly remembers Christmas season 2018 also knows you should be very cautious here.
Meanwhile in quantum computing.....
IBM’s stock has missed the quantum-computing rally but could still be your ticket to ride that hot trend-MarketWatch
We do think IBM will be one of the big winners here. I may look to add if it can pull and undercut and rally at the 50 day.....
