The market’s holiday party has kicked into gear as the guest of honor – the Fed – and our stocks are bouncing nicely in the aftermath.
The Fed’s gift was “patience” when it comes to increasing interest rates. The major indexes popped 2% yesterday and we’re seeing strong follow-through this morning. As I write this, the S&P 500 is up 3.3% since Tuesday’s close, and our stocks have outperformed nicely. Every single one except our UVXY hedge is higher with an average gain of 4.1%. UVXY, of course, is down in that time, but in this volatile market, it’s good to have the hedge in place, and we can remain patient for our chance to cash in, as we did with the second UVXY position we sold last week.
I’ll be in touch if we need to make a move, but for now, enjoy the strength in our stocks. We’ll talk about all of this in tomorrow’s weekly update.