Strategy Note: March 13, 2024
WOTE Special Ops, Long/Short Equity, and 60/40. Repositioning across the board.
Discussion
Of course, I’m fully aware that capitulating on a tactical pullback thesis tends to occur at a peak. But I’ve seen enough today to step out of the way of this freight train. Two things: IG CDX continues to melt in early-cycle fashion, and options whales continue to load the boat full of SPX calls any hint of red.
The bottom line: Powell incrementally moving to “just” two cuts this year next week is not enough to slow the Fiscal + AI freight train.
Portfolio Action
Took WOTE US 60/40 to neutral: 60% SPLG, 40% BIL; WOTE US Long/Short Equity to neutral: 100% SPLG; and WOTE Special Ops to a full allocation to July 19 SPY $516 calls.