Monthly Update, March 2024
Past performance is not indicative of future results. Trading is speculative and involves risk of loss.
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The Big Picture
The S&P continued higher in March, and since the end of the month has begun a more meaningful pullback. We note that small cap stocks as represented by the Russell 2000 index have significantly underperformed throughout the recent rally. Energy stocks have been remarkably resilient while Real Estate stocks have been hit hard.
It is becoming increasingly apparent that economic growth is impacted by government spending. In March the debt issuance declined notably, and this may be the main cause of a turn in the market. Whether this will continue remains to be seen, but we see it having a large impact on the direction of the market.
Recent Program Performance
A low volatility uptrend is ideal for our Overnight Advantage program, we just wait for a pullback and ride the trend. It's not always that easy of course - when the pullbacks get bigger, we are often stopped out. We never know when that might happen.
Fortunately, when the pullbacks become larger, volatility is increasing, and our Intraday Advantage program begins to light up. The two programs complement each other, and the Blended Advantage program is our way of smoothing out volatility and returns.
The Blended Advantage program continues to impress with the best volatility adjusted returns among all of our programs.
Our Outlook
We believe that the low volatility uptrend has expired, and while it's not good practice to call tops, we believe that the market will begin to churn at this level.
Best regards,
Sam Beckers and Dario Michalek
Soaring Pelican, LLC
805-322-7393
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. FUTURES TRADING IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK.
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