Our core indicators improved enough today to remove a portion of our hedges. We added exposure by removing some of our hedge and using the money to add to our long portfolio. We are now 60% long and 40% short (using a short of the S&P 500 Index).
The current hedge ratio is .67.
Several of our core indicators are lagging so it’ll probably be more than a couple of weeks before we add additional exposure. But as always, we’ll keep you updated with any changes.
The green lines on the chart below represent us adding exposure to the long portion of our portfolio. The yellow lines represent adding hedges. The red line represents aggressive hedging.