Surprise! Fed does nothing!
Lots of volatility today. Good to be market neutral or holding limited equity exposure. If the Fed raised, it would have been "they are killing the economy - sell now". If they actually cut it would have been "the economy must have been killed - sell now". They did nothing which feels a lot like "they don't know what to do so they did nothing - sell now".
Our accounts that are invested in our long only strategies are mostly in cash/short term treasuries (via a bond fund) and thankfully missing out on all the "volatility". Our market neutral portfolios are holding up nicely as well.
I believe the action today is negative for the market and we go lower. Looking closely at daily charts for the large, mid and small-cap indices suggests that the recent 3-week uptrend is broken. No surprise that large is the best acting of the bunch and probably the most resistant to further declines (see previous blod on large cap small cap). And, the Utilities continue to tell us to remain bearish and grab yield. This is not a great market for the bulls but I also see some thin silver linings. Would probably take more long exposure for the first time in almost 3 months IF we had a sharp decline from here. Conversely, if the market starts to move above the recent highs, it may prompt us to rethink our very conservative stance and get "longer". It's important to be flexible at all time.
Please visit our website for more information regarding our strategies at www.GellerCapital.com or email directly via attached link or call at 914.683.5100.
Our accounts that are invested in our long only strategies are mostly in cash/short term treasuries (via a bond fund) and thankfully missing out on all the "volatility". Our market neutral portfolios are holding up nicely as well.
I believe the action today is negative for the market and we go lower. Looking closely at daily charts for the large, mid and small-cap indices suggests that the recent 3-week uptrend is broken. No surprise that large is the best acting of the bunch and probably the most resistant to further declines (see previous blod on large cap small cap). And, the Utilities continue to tell us to remain bearish and grab yield. This is not a great market for the bulls but I also see some thin silver linings. Would probably take more long exposure for the first time in almost 3 months IF we had a sharp decline from here. Conversely, if the market starts to move above the recent highs, it may prompt us to rethink our very conservative stance and get "longer". It's important to be flexible at all time.
Please visit our website for more information regarding our strategies at www.GellerCapital.com or email directly via attached link or call at 914.683.5100.
posted by David Geller at 3:47 PM
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