Mechelany Advisors’ MODEL PORTFOLIO has been running in a fully transparent way since January 1st 2014. Its Purpose is to implement the conclusions of our research analytical process in a portfolio managed using institutional liquidity, diversification, risk management and asset allocation processes. In our TRANSACTION UPDATES we keep our reader informed in real time of the transactions in our MODEL PORTFOLIO
Last week’s bullish reversal in the main US indexes and the trading pattern of the past couple of days, especially in TESLA, with a failure to break to the downside at these crucial levels, coupled with the 3rd largest speculative short position in technology stocks, indicate that our expected rally in April is unfolding with a target on the SP 500 at 4’100 and a sharp short covering in technology stocks is probably on the cards.
With our very tight stop-losses on our US Technology stocks, and our desire to protect our performances, we have cut all our technology shorts at the opening today and stand ready to re-instate them later on either higher levels, or on a break to the downside.
Bond yields are still grinding up, the EUR is in a free fall. Gold is attempting to find a bottom, while the proposed $ 2.25 Trillion Biden plan for infrastructure spending, coming on the back of the 1.9 trillion Covid relief plan, is what the Doctor prescribes for the US, but will drain America’s Public finances.
Joe Biden is setting the stage for a corporate tax increase to 28 % with a minimum of 21 % and that will definitely eat into America’s Inc. Corporate profits ahead.
Our global scenario of a last rally in April 2021 before a severe correction into June is unfolding according to plan.
These are times to manage money and exposure like milk on the fire and be extremely agile in managing risk and volatility.
New Asset Allocation
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