SUMMARY
It's Friday and the Aggressive ETF portfolio is reflecting the market volatility as the ETFs represent the S&P 500, Nasdaq 100 and the inverse VIX with Treasuries. When the market panics, all instruments fall and sizable volatilities have been the norm for the week.
Regardless, I'm following my disciplined approach of identifying which ETF is the new receiver of the funds. The below chart shows that all ETFs are negative as is often the temporary case during a market sell off. Since treasuries are not 1:1 inversely correlated with the equities; they too can decline along with equities during market sell offs. Given the least decline value, SPXL has received the funds. I also did not make any adjustments until Friday and as market had recovered quite a bit from earlier in the week, the discipline to maintain the same Friday timing is of value.
The below Excel layout shows that the portfolio is at -$303 or 0.30% loss. When emotions run the show, many will grudge the decline and pine for the profits or panic sell. This portfolio, however, is designed to follow the trend and avoid panic or FOMO temptations. Let's see what next week brings.
Given these are leveraged ETFs, the drawdowns are heavier; but so are the upsides. Still, these ETFs are NOT designed to withstand the level of market wide sell offs such as the 2008 financial crisis. I have placed a 20% stop limit on the portfolio. In other words, at $80k portfolio balance drawdown; this portfolio will be stopped out into 100% cash or TMF should it be the most positive in return. I find this event to be unlikely, but a stop loss setup has been placed as a de-risk attribute.
Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
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