Running Out the Clock

Posted on May 31 2017 - 1:16pm by Dan

Yeup.

Still massively long the Q’s, from … I don’t know … it seems like forever now.  Was that April 20th we first started talking about that process?  Which is quite interesting, because we’re also bullish on the mid, to the long-end of the curve.  Which is leading to a rather interesting market view on our part.

However, these are not ‘blind’ positions that we put on, with no thought of review.  In actuality, we review our processes, check to see if a re-balance is necessary and compile our performance stats at the end of every month, and at the beginning of a new month.

So as today is May 31st?

At this point?  We’re just running out the clock and time until this evening’s market close, so that we can begin our month end summation

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

  1. MercuryBlack June 1, 2017 at 6:42 pm - Reply

    Does collaring have a place in any of your processes or do you generally try to avoid doing that?

    • MercuryBlack June 1, 2017 at 6:44 pm - Reply

      I mean if you think the intermediate risk profile is moving up, you could start thinking about an initial collar position?

      • Dan June 2, 2017 at 12:23 am - Reply

        Yeah, I think there is a video around somewhere actually, where I talk about that very thing. If memory serves (and I’m only going off memory here, so I could be wrong), but I think it’s in one of the last money management series videos where we discuss strategies appropriate to an account size. I _ think _ that’s the video … where I mention that very thing. With much larger accounts than what we demonstrate here, other strategies and defense mechanisms become available, such as collaring …

        D

        • MercuryBlack June 2, 2017 at 2:00 am - Reply

          Ah okay sweet, good to hear that is a tactic that is on your radar.

          Because yeah it might not exactly be as “sexy” as going blind-short as you mentioned in your last video (or as dangerous!), but collaring fulfills a very important role of smoothing out some of the volatility if there is some uncertainty about market direction.

          However as you’ve pointed out the markets are just grinding higher, and higher. April-May was kinda quiet, with record (?) low volatility. I want to say we’re building a channel, but who knows. We’ve not had any major corrections in quite some time. You’d need to go back to November for the last one, and then it was way back in January of last year that there was a really big one.

          Anyways, keep at it man! Good luck out there!

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