Portfolio Breakdown....

Holiday weekend appraoches while a close the month of may Econ Noise behind us.

I am sure longs are clearly fed up with the action and rather allocate energy in non-market realted activities.

Consider adding to shorts if the S&P breaks below its 200 day mva, setting off a panic. (more points on this attached below) Seeing a lot of oversold stocks once again, -- a usual behaviour following a signifigant sell off.

I continue to notice the stregth of low beta names especially in Meda/Adevertisment and Consumer Staples area.

Some names include OMC,TKLC, NCR , TKLC, INTU, CKR, and WMT --just to name a few.

Now high beta names remain oversold once again but no compllenig reason to rush to short or even accumulate at this point.


Stradegy: Slice the market in half between high and low beta. Trade high beta ; Invest in low beta.

Trade around beta postions with shorter-time frame by identifing quick exit/entry points. Mostly, trading bias on the short-side but avoid building intermidate-term postions in high beta names without fundemental catalyst.

Build long postions in attractive names in low beta areas. From 6-7 low beta groups indetify groups that are working and find the leader in that space.


50% trading, 50 % investing portfolio. short trades and long investments. As beta names become extremly oversold intermidate-term then we can change current stradegy.

Four questions to ask for portfolio postioning:

Long High Beta: 25%
Short High Beta: 25%
Long Low Beta: 50%
Short High Beta: 0%