I was expecting markets to drop hard next week and be positioned for such a move. However, I am not so sure anymore and a very weak Euro tells me that my theory is taking water.
Therefore, I will probably keep the two "higher rates" trades (XLF and TBT long positions), but will look at shorting some individual small caps.
All the current positions look fine for now. This offers some buffer to hold longer.
Note that ETFs investors selling TBT carries much less weight than active Futures traders who are selling Treasuries.
The trade ideas for today are below. I am mostly interested in those in Yellow. The short ideas in Blue are large caps that are part of the S&P500. Not a good idea to short them here. I kept them on the list just to see what happens to them.
BLL looks very interesting as a long trade. Earnings are in one month, but accumulation is very strong and not due to index investors only. I will probably buy a short-term position, but also some longer-term June or September calls.
TMHC also looks interesting as a short trade. Even as it is today.
Finally, HIBB is bouncing back up to a strong resistance level while under real selling pressure.
If we do not have a large opening gap, I believe that the Portfolio will be 60% long and 40% short at the end of the day.