Both equities & Treasury bonds popped on today’s slightly cooler-than-expected CPI report with the gain in TLT (30-yr Treasury bond ETF) more than offsetting any losses on a QQQ short position as an indirect hedge & as such, my plan is to continue to hold both positions until & unless the diversified indexes (VTI, SPY, RSP, QQQE, etc..) are able to print solid daily or weekly candlesticks above their recently highlighted downtrend lines.
TLT 60m Nov 14th
TLT was highlighted as my favorite core swing/trend position with a suggested beta-adjusted position size of 2.0 (i.e.- 2x a typical position in a stock index ETF) in the original trade setup post back on Oct 19th & also as an indirect hedge to an equity short positions. The current +2.30% gain on the day factoring in the 2.0 beta-adjusted position size equates to a 4.6% beta-adjusted gain, more than offsetting the current 1.95% gain in QQQ or the 1.6% gain in SPY on the cool CPI report.
QQQ 60m Nov 14th
As both the major stock indexes as well as Treasury bonds & yields still remain in very close proximity to major trendlines (as do the major stock indices), my preference is to sit tight with these offsetting positions in place for the time being & see how both finish the day & quite possibly the week, as we still have several key economic reports on the calendar this week. (Plus, the divergences on the 60-minute charts of QQQ & most all of the Mag-7 are still very much intact).