Seasonally, the first half of June tends to be a little dicey. That and the current market conditions have led me to keep only a light presence in the market, with a focus on some alternative investments besides stocks. I just got back from vacation, and I had stopped putting on new trades before I left. Who wants to be tied to the market while on vacation? Not me!
At the beginning of June I entered a position with ZLS (ProShares UltraShort Silver ETF), as silver prices tend to dip during the month of June. When this play is a win, it tends to do 15-20% or so. As of right now I’m up 12%, which is making my trigger finger a little itchy.
Gasoline futures tend to rise in the last week in June, through the end of July. Looks like today is getting a bump and giving me a signal, so I’ll enter into a position with UGA at the end of the day. Crossing my fingers and hoping gas prices go up! (Wait, did I just say that?!)
I’ve also been investigating short-squeeze plays . Since I don’t have access to historical fundamental data such as short ratios, I can’t currently backtest my theory. I’ve been forward-testing it for a few weeks, and also placed four trades, and so far so good(3 of 4 were wins). A friend has pointed me to a source for historical fundamental data so I might give that a go.
And lastly, I continue to use very small mean-reversion strategies, with profit targets in the range of 2% and a duration of just a few days. Seems perfect for this low-volatility, go-nowhere market we’re currently in.