Portfolio Update - 1/7/2021

5 months ago   •   1 min read

By FuseTrader Admin

So far we're off to a slow start, mainly due to being overly conservative with the $TIP position, and for a few other reasons relating to working out some kinks in our processes.  If you haven't read the memo Why TIPS?, please refer to it here, it's a detailed explanation of our inflation expectations as well as some insight into our portfolio construction process and goals.

Updated Portfolio

  1. Long $TIP at 68%
  2. Short $TSM at 10%
  3. Long $TLT at 7%
  4. Long $SOYB at 6%
  5. Long $CVX at 2%
  6. Long $CANE at 2%
  7. Long $SLV at 2%
  8. Long $COP at 1%
  9. Long $MTA at 1%
  10. Cash at 1%

Portfolio Dashboard

Click on the image below to enlarge:

FuseTrader Portfolio Dashboard

As you can see from the Dashboard, we are covering the $UVXY long and the $SHOP short.  The $UVXY position is based on our volatility model and it's data is much more granular than is probably practical for use in a portfolio that can only be revised on a daily basis, this will require some thought on our end going forward.  The $SHOP short position was based on a signal from Dec. 24, 2020 which indeed worked out well.  However, we used this signal perhaps a little too late for it to be effective for us.  It should be noted that it was a weekly signal and statistically these signals are good for up to 13 days, which is why we pulled the trigger on it.

The new short position in $TSM is a strong signal and we look forward to seeing how it plays out.

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