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As is typical with market corrections, they seemingly come out of nowhere catching most investors off-guard. This most recent correction which began late January was no exception. However, clients of WhiteWave were forewarned with enough time to prepare. Why? Because WhiteWave has a reliable and repeatable process developed over a forty year period.
Most recently, our proprietary Risk Models were able to identify the risks forming in January 2018 suggesting a very high probability of an increase in volatility. This gave WhiteWave clients sufficient time to take defensive measures to protect their portfolios depending upon their trading style. Our clientele consists of Retail Investors, RIA’s, and Hedge Funds; each with a different approach. Some trimmed long positions, others bought Put options while others used Inverse ETFs as a hedge. Regardless of their approach they were prepared and profited from our process.
One RIA client called to describe how he shorted the Russell 2000 against client long positions. Then, using our intraday market alert, he successfully covered the short on February 9th. This same RIA repeated the process again using an Inverse S&P 500 ETF. Once again covering the short upon the advice of our intraday alert to cover short positions at the 200 day moving average. While each client will utilize our research differently, the point of this example is to describe how one RIA client used Risk Management to keep his clients invested in leading sectors and maintain profitability.
The WhiteWave process employs elements of price, volatility, Matrix Levels, risk spreads, among others, across multiple durations. We measure and record the data for U.S. stocks, Bonds, Currencies, Oil, Gold Commodities, and Foreign Stocks & Bonds.
Our models enable us to distinguish between a market correction vs. a bear market. Throughout 2017 when many continually called for a market top, our models kept long-only and RIA clients invested through January 2018. At which point our models detected rising risks as described above. For active traders our intraday alerts provide trading levels for day-traders and those wishing to trade counter-trend moves.
Our current view of the market condition is that it remains a tactical, short-term event driven market. Our long-term risk models indicate that after three months of sideways action, it continues to be a corrective move vs. the start of a bear market. No system is perfect, but our process is reliable and repeatable with models designed to improve the probability of success. Whether you are a day trader or long term investor, we can help you stay ahead of consensus.
WhiteWave April 2018 Update
Energy: Long PSX, VLO, XLE
Soybean (k) Futures: Long SK8 $9.94/BU
Closed Long SK8 4/16/18 $10.462.
*Average gain= $2,650/per 1 futures contract.
GOOGL: Long vs.200 DMA
MU Long 53.10 with a 40-cent stop.
Closed PSX 20%,VLO 13%,XLE 8.8%
SOXX/SMH Stopped out MU/ China headlines (Trade management)
GOOGL hit its objective/exit zone approx $1100
Alert: USD/MXN & AUD/USD matched up w/Equity Indices/falling Bond Futures /higher rates = Sell Signal: short-term Risk Off
Early A.M. Cash session/retest ES (Spu) 200 DMA = rally (short squeeze)
Q4 2017-Q1 2018 Chronology of trades
If you’d like to learn more you can click on the research link to our site or just call.
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April Fan Mail:
Thanks to your Daily Market Intelligence reports I am becoming much better trader. There is no BS there! Just great down to the point analysis.
Your piece on ULTA gave me an educated courage to commit to the right direction. Just made a best trade of the year with triple digit return over 24 hrs. That paid several years of subscription plus I probably owe you a bottle of a good Italian wine from Asolo. Best regards, Robert C
All my best,
Chief Market Strategist
Stocktwits: Judd Hirschberg
WhiteWave Trading Strategies
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