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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Participating in a webinar on January 9th, details below:
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So they are not going to make this easy. Either Wednesday was an over reaction and we see a bounce yesterday and back to normal. Or, yesterday's bounce gets faded and we are lower today. Looking like the latter. PCE is this morning, so that could change the complexion.
This is still a big problem.....
Going to be hard to get any sort of meaningful rally when the 10 year is above 4.5%.
I pointed out the chart of RSP in the watchlist yesterday. I don't think breadth is predictive necessarily, but you should be cognizant of it. If you looked at SPY or QQQ leading into Powell you may have assume everything was ok. Equal weighted S&P told a different story.....
Right after the election we had been hearing that Wall Street, believing that Harris was ahead, was scrambling to add risk. We saw this across the board. Now, we are seeing some unwinding. I am still a bull here, I think you ought to be looking for spots to buy names you want to own, but I also think you should be balancing them out with shorts. I have been looking for a spot to get into GEV for a while, did that yesterday....
Also added to IBM.....
Both of them had undercut and rally moves at the 50 day and had triggered buy signals on the RSI and Williams % R. I will continue to look for set ups like this in what I think are going to be the key themes into 2025.
On the short side, I will continue to look for high fliers that break key support levels, and are not in where I think they key themes are.
I also went short AFRM....
And UPST.....
