Fund Commentary (Dec. 2013)

adaws eagle fund commentaryDecember entailed a busy month trading, squeezing out a net return of 14.07%.

  • Two positions expired capturing their maximum profit potential.
  • Four positions were closed at a profit.
  • Four positions were closed for a small loss.
  • Five new positions opened, of which one expired capturing its maximum profit, two closed for a profit, and two remain open with a February expiry date.

Market Update

A buying stampede into the last trading day of 2013 pushed stock indices to all year highs. Optimism shot to extreme highs, often a sign of an impending correction.

Investment returns were all over the place in 2013. The Dow Jones Industrial Average returned 27%, the best annual performance since 1995. Gold took it's worst dive since 1981, falling by 28%. Meanwhile, U.S. T-Note yields jumped to 78% as bonds fell.

Traders are now more bullish towards stocks than at any time over the past 8 years. The current level of conviction towards stocks implies an impending correction, so now is the time to tread even more carefully, and shelve the greed levels found inside all of us.

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