Updating the Posture for IAS Signal
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.