Wednesday, September 24, 2014

Finally Some New Positions and Updates

No posts for the past 6 months due to finishing my CFA level 3 (which I passed), my wife delivered our first baby son, and I also couldn't find any longer term trading positions for equities.

Last night however I added in two fairly big option  positions.  One was long put on the ESTX50 (euro 50 stocks) and the other on the SPY.  Both have expiry of 2016 as I prefer the long dated options.

These positions are in response to continual yields moving higher in rates which are obviously signalling a change in valuations and a repricing in multiples lower.  I was already 20% in cash, now I'm positioned for a lower move in equities.  Whether or not the repricing will occur, or if this is a minor dip for equities is hard to know, so I'll be probably having to close at least half a position if we get new highs again.

I've also been taking losses in my gold, silver, miners but I do think the geopolitical climate will offset the rising yields which will continually keep pressure on the prices of the futures.