FEBRUARY 28, 2020

ETF FRIDAY - THE BLOODBATH CONTINUES

What. A. Week.   We have just experienced one of the quickest sharpest market declines in history.  Peak to trough, 15% in 6 trading days.  Needless to say, our ETF portfolio took a beating.  And, as timing would have it, our rules called for us to manage the international side this week, so the much larger domestic side went untouched.  If there is one thing we believe in, it is sticking to your rules.  Perhaps, if this was a real money account, we may have peeked at our domestic holdings.Anyway, no surprise management came with several liquidations on the international side.  We also found time to manage our delta neutral SPY strangles. That strategy hasn't fared well at all.  A constant grind higher followed by a massive explosion in volatility is not  what that strategy craves.  But, having a plan, and sticking to your rules is crucial in weeks like this.  We did just that, we rolled our strangles, some are now VERY inverted others are now straddles, but we keep on rollin'.  If we can extend duration, we have a fighting chance.  We have, and we do.... we hope. 

Watch today ( and Thursdays) video  to see exactly how we navigated the weeks storm with our paper money ETF portfolio.