Quiet and Cool Profit

Posted on May 12 2017 - 3:37pm by Dan

Volatility is low.

That is no state secret.  Every talking head from here to Mumbai is discussing the fact that the VIX has been flirting with the single digits.

So while things have been quiet?  That doesn’t mean that the opportunities for profit are in any way lessened.  Like ‘Cool-Hand-Luke’, you can pull in consistent profits in quiet, low volatility markets as well.

Our Core Program is having an amazing 2017.  Just grinding higher and higher.  Day after day.  Month after month.  Which is not really that surprising to us, since that program is running a Sharpe Ratio of 1.29 since 2007.

Yesterday morning, we announced in the StockTwits stream that we were exiting the Target (TGT) trade in our long-short process for a nice profit.  Good thing too.  Because Target (TGT) proceeded to just dump after we exited the trade.

Oh, and if you’ll remember, we stated that we had been massively long the Q’s.  We’re not ones to brag (yes we are) but that seems to be paying off quite well.

Not a bad way, to spend a quiet week.

How do we produce such fantastic risk-adjusted performance?
Check out Sharpe Trade’s Short-Term Trading Course !!

2 Comments so far. Feel free to join this conversation.

  1. MercuryBlack May 14, 2017 at 1:52 am - Reply

    With Snap Inc garnering a lot of Media attention from the financial markets press recently. What’s your take on it, and generalized “IPO feelings”.

    Case in point, it really seems like the valuations for “technology unicorns” are getting a little stretched now. Especially when laypeople are finally paying attention to building out their asset base, albeit jumping in at the deep end rather than being more prudent.

    I remember from back in the day, you were talking about Facebook, and how it’s just better to keep your head down and stick to your circle of competence. It really seems like we’ve come full circle to another “monster IPO”.

    http://fortune.com/2017/03/03/snap-stock-snapchat-ipo-uber-bubble/

    http://www.barrons.com/articles/more-evidence-that-young-investors-loved-snaps-ipo-1492634024

    http://www.businessinsider.com/snapchat-stock-td-ameritrade-trading-2017-4

    • Dan May 14, 2017 at 2:59 pm - Reply

      Heyya mate.

      Yeup. IPO’s are one of those things, that is so far outside my style-box, and there is so much to understand with any IPO? I’ve always kept my hands off of them, and am fully comfortable saying: “I don’t know”. I mean honestly … probably because I’ve so specialized in longer term mechanical processes, and discretionary swing trading? That IPO’s are one of those things where in all actuality, I’m sort of comfortable in my ignorance. 🙂 That’s not to say of course, that some don’t have a model that can value them well. I know a guy out in NYC, works for a small tech Hedgefund in Midtown. He has always seemed to value them really well. Bought Facebook (FB) and LinkedIn, and basically has shorted everything else when the opportunity presented itself. Myself? I’m as lost as a ball in high weeds with IPO’s. 🙂

      Dan

Leave A Response