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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The market attempted to rally yesterday, ended up selling off, then closed well off the lows. Perhaps this was due to the Atlanta Fed's GDPNow estimate, which was revised down to 2.6% from 3.1%. It was also probably due to TSLA, which was down over 6%......
I had been out of TSLA so I ended up buying the dip with some long dated calls and also used some shorter term credit spreads to finance options on the levered ETF. RSI and Williams % R dipped into buy areas. Those looking for support areas could find it around 362ish.
Gold miners were one of the best areas of the market yesterday. I got back in, but am fully aware this could just be a lower high in an overall downtrend.
So far this morning it looks like the market wants to try to rally again. The QQQs did pull an undercut and rally at the 50 day.....
Besides natural gas names (see below), I have been buying up energy names over the past couple of days....
Yesterday I also used an XLE credit spread to finance calls on GUSH....
While I do believe the natural gas names are a long term play on AI power, not so sure about these guys, may just be short term tactical.
Themes
AI Power
Natural Gas Stocks Have Momentum—and Cold Weather-Barron's
News vs. Noise
Nothing.......
What stocks’ worst stumble since 1952 in the final days of 2024 may mean for 2025-MarketWatch
