Weekly Market Wrap: Taking Profit on Bond and Crypto Short Trades!
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This week, stocks and bonds continued to decline, as interest rates are expected to climb, and inflation looms overhead.
With almost no net position in stocks, I am waiting for the decline to end before buying cheap. And after a close to 20% profit in bonds, I have decided to cover my shorts and take profits.
Going forward, commodities and crypto remain my favourite bets, which is why they form the weight of my portfolio.
With not much good investing opportunities at the moment, I have increased my portfolio stake of yield farming to 25-30%, so that it can generate me 40-60% passive returns throughout the year. This should help my portfolio achieve a healthy overall return.
[Photo: Canyon Matka at North Macedonia – See my full travel photo log!]
For our weekly market wrap, we go through some of the trade calls and analysis from last week, which gives us valuable insights for the week ahead.
We cover 3 main markets with a total of 200+ counters, so we will never run out of trading opportunities:
- Forex, CFDs, commodities, bonds
- US stocks, ETFs, global stock indices
- Cryptocurrencies, crypto indices
By covering a broad range of markets, we can focus our attention (and capital) on whichever market currently gives the best returns.
Table of Contents
Portfolio Highlights
Current long-term investment portfolio allocation updates:
? Holding quite a lot of cash because I am playing defensive and waiting for good opportunities to turn aggressive
? Prefer commodities over stocks because they perform better in the late stage of a bull market, plus inflation is still in play.
? Yield farming gives passive income (20-60% annual ROI) without much risk, so it can be used to generate cashflow.
? Have been shorting bonds for the past few months, will be closing the position soon because it is close to hitting TP.
? Still bullish on crypto in the long run, will slowly add more positions on pullbacks.
Stock & Bond Market Highlights
Following up on my long-term TLT short, it has now reached my TP at the bottom of the trendline, after clocking 20% profit from the top! ????
Product: US Stock ETF
Name: S&P 500
Ticker: US500
Exchange: N/A
Analysis: Long-term trend is still sideways or bearish, noteworthy in this chart is the high volume associated with market reversals, as indicated by the red rectangles.
EP: $4500 to $4600, or on bullbacks
SL: $4700
TP: $4150, $3800
Crypto Market Highlights
Following up on Ethereum (ETHUSD), it is currently having a pullback, which is a good buying opportunity for those who missed out the prior run.
There is likely another leg of pullback to the $2900 to $3000 support zone, so I will be looking around that area to accumulate more.
Note: I have put in some hedges (short positions using futures) to profit from the short-term price correction, while keeping my long-term positions.
Taking profit (+56.2%) on some of my Ethereum short trades! ????
Good luck, and may next week bring more excellent profits!
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Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.
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