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James DiGeorgia, Mr. Macro
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Superstock Investor

SSI Special Report

[Printable Version of This Page]

New Feature of Superstock Morning Matters Portfolio

Special Report #076  September 7, 2019

The Morning Matters Portfolio is a 12 stock portfolio of which each stock starts out with a weighting of 8.50%. We are creating a slot going forward for a hedge in weak periods of the market. This will cushion any stock volatility in the portfolio.

I should have done this a long time ago BUT I needed the right vehicle to use. I now have the vehicle. It is the Advisor Shares Dorsey Wright Short ETF (DWSH). This ETF makes money when the market falls because you are short stocks. DWSH came into being last year and I have been very impressed with its results.

The concept as it relates to our portfolio is that when our long only names are dropping, DWSH will be making money limiting the downside. Such a deal.

The S&P 500 had a recent peak on July 26th and fell by 5.99% by August 5th. During the month of August, the S&P 500 fell by -1.67%.

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DWSH rose by 8.23% from Juy 26th through August 5th. For August it made 12.55%. This will add nicely to our results going forward in that portfolio. 

On Friday, my trading model on DWSH went back to cash. So we will wait for our next opportunity to deploy it. Rest assured there are likely to be opportunities to use it before year end.