“News” is always the unknown “luck” factor in the market. Today, the market is very lucky: First, the jobs report was better than expected, and then Mario Draghi said “Qualitative easing is here to stay,” and those two events have been like a shot of heroin to the market. The Dow is up about 360 points, and the SPX is up about 39.
TOT daily traders have taken a 1% loss on a modest 200% short position in the SPX (2% total) and are now on the sidelines. The market, which always theoretically asks the question, “What’s new?” will probably end the day having completely digested the news, making Monday a fresh slate. And that fresh slate for Monday will be bearish, regardless what the market does during the balance of today.
However, all Turov Investment Group clients are currently profitable today, as they are either 100% in the Precious Metals Fund (Sector Fund Program) or in a hedged position of long the Precious Metals Fund and short the Russell 2000 Index (except for special situation clients who are in the money market fund). As I write this, the Precious Metals Fund is up over 4% while the Russell 2000 is up exactly 1%..
Have a great weekend, thanks for the opportunity to be of service, and I’ll update before the start of Monday’s trading session.
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