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
Shorting OIL and Copper
As discussed in our weekly review on the Model portfolio, we have now reached the stage where we see Oil and Copper way over-extended and hitting major resistance levels.
OPEC’s meeting tomorrow will either keep production levels as they are or allow members to increase production. We have used ETFS with no leverage to start our positioning there.
After China’s sharp downdraft last week, we believe that we are getting close to the tactical bottom that we have been expecting and have closed our Hedges at a profit and started re-building our exposure to the Chinese domestic market through the CSI300 ETF 2x CHAU US.
Finally, and contrary to most prognosis, the US dollar is building a solid base for a rebound following the rise in bond yields. We have therefore SOLD the EUR for now.
New Asset Allocation
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