Tuesday pre-market and it looks like we are in for another wild ride
Good morning! It is Tuesday pre-market and it looks like we are in for another wild ride in the aftermath yesterday’s Fed announcement that it plans on reviving “Operation Twist.” Due to the market volatility, this has definitely been a difficult week for succeed with a long only portfolio.
On the portfolio front, I started the week owning levered short ETFs, primarily and . Unfortunately, to be conservative, I winded down my shorts into the Fed announcement. To add insult to injury, I went in aggressively on levered long ETFs at what now seems a bit too early. Additionally, I have no open positions on the currency side because I have no prior experience in currency trading, and would like to follow these markets a bit more before constantly holding open positions. My plan for the rest of the week is to hold steady on my levered longs, but reconsider if my equity portfolio hits -10%. This is a long competition and I would like to keep my buying power intact as earnings period approaches.
On the team front, the University of Michigan Ross School of Business is excited to be competing against other top business schools. Currently, we have no fluid team strategy, but we have set up a forum for market insight and to trading ideas. I am very interested to hear what other schools are doing. Go Blue!