Heightened Risk!! This May get Very Scary Soon...

Jordan Kimmel  |

It is not “what is announced”, what is important is how the market responds to the news. Obviously today’s new jobs numbers were positive for the country, but the reaction by the market suggests heightened risk for your equity portfolios.

While we still have not completely climbed the “Wall of Worry” and I still suspect we hit DOW 20,000 before the next real bear market rolls in, I have personally taken several defensive measures today. The action in the real estate sector today suggests the market is more freighted about interest rates then thinking new jobs = more houses sold.

I have cut back on my long positions, raised cash, and have taken positions in ETF’s negatively correlated to the market. This has been a great market. Remember i,t went up while most people were scared of the job market and terrified of the economy. It’s a reminder that the economy and the stock market are not linked at the hip over the short term. Let me also remind you of another important Wall St. saying...it is dangerous to pick up pennies in front of a steamroller. I know I won’t be having the last drink at this party.

 

Longs- (AMOT) , ($QRVO), (HDB) , (TSEM)

Shorts- using negatively correlated ETF’s


 

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Companies

Symbol Name Price Change % Volume
AMOT Allied Motion Technologies Inc. 43.41 -0.52 -1.18 25,218 Trade
QRVO Qorvo Inc. 63.28 1.03 1.65 888,198 Trade
HDB HDFC Bank Limited 103.35 0.48 0.47 617,979 Trade

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IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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