Due 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.
- 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.
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.