A zig zagging week!

The past week has really been exciting with a lot of cross currents. Several times during the week I Tweeted about my hedging strategies using the $SPY which is the S&P 500 Tracking Stock ETF. Since my world view is that the US economy is in recovery and the fact that I want to build out some of my stock positions I do not want to sell anything if I think that the shares are actually getting cheaper. Still, I do want to be able to profit from the back and forth action and protect my holdings on the way down and that is why I am trading short in the $SPY.

2014-02-01 15-45-41

The first column in the image above shows the symbol of the stocks which I am long or short and the background reflects if it is a short or long position. The $SPY shows that I am short a position which is now equal to 12 % of the portfolio, during the week I was short up to 20 % but covered almost half into the down opening during Friday. I also took some profits in $UA to raise some more cash.

To summarise the portfolio reached a new all time high this week even though the general market has been going down now for some time and I have only had long positions. This means that those long positions which I hold are actually performing better than the rest of the market and I have also managed to hedge effectively using the $SPY.

During the coming week there is important economic statistics being released on friday, the employment number, and I think that the market could be nervous in front of that event. Thus I will continue to hedge by fading the rallies and covering into the dips.

Happy trading!

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