echovectorVEST.com September 23RD 2011 9AMEST: Staying "A Fed" of the Curve: Turning Additional Market Engagement, Sophistication, and Nimbleness, into Advantage
http://www.echovectorvest.com/ September 23RD 2011 9AMEST: Staying "A Fed" of the Curve
NOTE: It might be prudent to include in assessments and considerations what the Fed's institutional interest in supporting, or rallying, this market might be, within this phase of this Presidential Cycle and its current electorial context, as well as considering the Fed's other extensive responsibilities, mandates, and tools.
Last week ProtectVEST and AdvanceVEST forecasted the merits of a short covering position with removal of full portfolio major market equity hedge insurance, and a double long, last Wednesday at $110 on the DIA equivalency basis. This past Wednesday morning, ProtectVEST called for the re-establishment of full net portfolio major market equity hedge in the $114-115 range, including the removal of the double long, immediately, and surely before the Wednesday afternoon announcement, as wisedom.
ProtectVEST believed there was a chance the markets could have rallied after the announcement, but also believed, in its downside bias, the removal of the full portfolio insurance price hedge should only take place well after certain price level attainments had been accomplished from such a rally.
Consistent with ProtectVEST's bias and expectations, the market sold off sightly ahead of the announcement and further strongly after the announcement. Those employing strategies consistent with ProtectVEST's and AdvanceVEST's outlooks and suggested positionings have benefited by gaining nearly 10% into Tuesday morning from the prior Wednesday low, and have also been fully spared their portfolio the 7-8% aggregate loss (from DIA $114 to DIA $106) on large cap composite equity exposure since Tuesday morning earlier this week
ProtectVEST holds that within this phase of a the 4-year Presidential Cycle, and with the strong possibility of a 'compressed' Regime Change Cycle occuring within it, the risk/to rise ratio in general price level assessment remains, at the very least, significantly challenging to the rationale of continuous long exposure.
Therefore, ProtectVEST has suggested, and maintained, strong vigilance and the wisedom of relatively continuous full major market portfolio large cap equity exposure price insurance hedging since the end of April, intermixed with occasional employement of 'precision' short-term full short positioning and short-term full net long positioning, on and off, for further optimaization within the market volitility since April, turning this volitility into a further capital gains advantage, not an 'unengaged' capital loss disadvantage.
ProtectVEST and AdvanceVEST
"We're keeping watch for you"
"We're keeping watch for you"
