Updating the Posture for IAS Signal

by | Jan 12, 2017 | IAS (Internet Advantage Strategy), Option Trading, Technical Analysis, Volatility

Yesterday, for the IAS Sector Long/Short strategy, we moved from a Bullish posture to a Market Neutral posture. All portfolios are now long 3 sectors and short 3 sectors – all equal weight.

The overall posture has been slowly degrading and it no longer warranted a strong enough bullish signal. So far with today’s price action, that looks like a decent call – but its way to early to judge this move.

Remember, that this is not a bearish posture. The signal has just degraded enough to make us take a more cautious stance – and place the overall portfolio in to market neutral.

We’ll update you as the posture moves again – as it will almost requires a Market Neutral posture before it enters a Bearish posture.  It doesn’t mean a Bearish posture is next. It could go back to Bullish – but the signal is definitely sloping towards a more risk-off approach.

Thanks for working with ZEGA Financial.