Sept 27: Green Futures and our managed accounts

By Jeffrey Cohen, Investment Advisor Representative
US Advanced Computing Infrastructure, Inc.

We have been managing our new Chicago Quantum Net Score / Smart Volatility fund through this bear market. It has been successful, and generally speaking our hedges are 'carrying the day' and providing earnings to cover losses on our long stock portfolio. 

However, today is a green day and two of our three hedges are up pre-market, and a new CQNS Down run stock is to replace one of our hedges. That stock is also up. This is when our fund will 'earn it's paycheck' and the longs should increase faster than the hedges decrease. Time will tell, and we will report back mid-day on progress.

Our model suggested a smaller and more risky portfolio for today. This is a very similar portfolio to the one chosen yesterday, and reflects a 'risk-on' attitude with high-beta stocks.

What is interesting is that we are net sellers in our long positions by about 2:1. We are buying one new full position, selling two full positions, and doing small DCA on three positions.

We are buying back shorts on our $SPY hedges, and we are swapping one of our short CQNS DOWN Run stocks with another. Overall, we are reducing our hedge on CQNS short stocks by buying them back and taking smaller short positions.

So, the market is showing strength pre-market, and we end up supporting that position with our trades by buying more than we sell, and buying in the riskiest positions.