It seems I’ve been stuck in a holding pattern since summer began. It all began with the discovery that I have never enjoyed a profitable June or July. This innocent discovery put me on the defensive. I have now created an almost perfectly balanced portfolio that fluctuates about 1/4% up or down every day, even in the insane volatility we’ve seen lately. Maybe I should’ve just went to cash until August and take some time off.
Really nice gains in DUST and BBRY have been offset by beatings in CNX and CPL. Fortunately I sold half of CPL at the end of May. Why did I keep CNX and CPL? Because I believe we will see rising energy prices this summer (CNX) and because Brazil will rally big if my bearish thesis is wrong (CPL). Oil is already on the hundy roll. Just wait for the headlines when oil tops $100 per barrel.
With Fed minutes and quad witching this week, we have plenty of headlines to pay attention to. Maybe one of them will break us out of this holding pattern.