HX Trader Position Update

We have been operating the strategy we employ in our TRADING publications – HX Trader and HX Income – for almost half a decade now.

The underlying methodology of the strategy, though, has been developed across our three decades as a professional investor.

One of the key aspects of the strategy is taking advantage of market volatility. Turning it from a challenge to an opportunity.

How do we do that?

We all know that the value of a company almost never moves 10%, 20% or 30% in just a few days or weeks.

Stock prices do that all the time though!

At HX Trader most of the time we are identifying “winning” companies where they have seen this kind of sell-off and we think it will bounce back. These sell-offs are almost always driven by some sort of “news” at the company.

We do the technical and fundamental analysis of the company along with an assessment of the importance of the “news” and decide on entering a position. 

This is what happens most of the time.

Occasionally, though, volatility in the stock market creates the opportunity. There is NO “news” at the company but the stock sells off.

In these instances, we identify the best companies with the best fundamentals and buy them.

Here is a table showing our number of outstanding positions in HX Trader along with the price of the S&P 500…

We launched back in February so you can see our launch activity as we ramped up the portfolio into April. We did some profit taking as the market moved higher in May but then – as the stock market hit new highs – dramatically brought down the number of positions to just 5.

This was back on July 17 with our vocal call that we thought the market was likely to correct.

As we all know it DID and did so quickly and violently. You can then see in the chart that we quickly bought in and went back to our peak number of positions.

In the last few weeks, we have been taking profits on those opportunistic positions and today we continue to do so.

With the stock market having snapped completely back, we think it is time to cash in on our recent bets and wait for new opportunities.

Here are the position updates…

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