Fund Commentary (Apr. 2014)

adaws eagle fund commentaryDue to position adjustments in previous months, Adaws Eagle Fund was able to produce a net return of 12.91% vs 0.62% for the S&P500.

Our performance this month has been solid, bringing us into positive territory for year-to-date returns.

April Trades

  • Two positions rolled, and still open.
  • One position hedged using an iron condor, and then closed for a 4% profit.
  • One position opened and closed on the same day for a 4.1% profit.
  • One position opened, and still open.
  • Two positions closed for a 13.3% and 22.1% profit.

We loved our day trade on April 15th due to the huge swings in the market that day. Day trading is not something we do, however with such a huge swing just minutes after entering our position, it made sense to close out and take the profits rather than let greed get the better of us.

Market Update

There is a definite movement from "risk on" to "risk off", and this should spread to all sectors and lead to an overall stock market decline. The S&P 500 and Dow Jones Industrial Average are finding it hard to push through their all time highs, even after a somewhat decent earnings season.

Gold has been in a sidewards market, and analysis shows it will weaken further. Silver is even weaker, which is a pretty good proxy on the waning U.S. economy.

The market is now over-loved, and over-leveraged, a dangerous combination that will lead to a significant bear market as levered positions are unwound. What we are seeing is a rally based on hope rather than substance. Now is not the time to go long unless you want to lose your shirt.

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