XBI - 'Bullish Or Bearish?' Stock Market Commentary

2024-03-21 15:21:09 ET

Summary

• In the last week(s) we have put on tactical hedges/shorts across our portfolio.
• While the indices look a little vulnerable here, there are many high-quality companies and turnaround stories that are just beginning their turnaround.
• One thing I am keeping an eye on is the sea change in the global coordinated central bank policy. We will look for clues from the Fed Press Conference.

In the last week(s), we have put on tactical hedges/shorts across our portfolio. 1% of total equity capital is an S&P index put spread. If we get a 4-8% pullback it has an EV (expected value of ~5.61X – 461%). So far it is unprofitable. Another 1% of total equity is a put spread on the semiconductor index. If we get a 4-8% pullback on that sector it has an EV (expected value of ~5.74X – 474%). So far it is almost a double....

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