Meta Strategy Trading Portfolio – Probability Map Update.

How to Hedge

Today’s report discusses the available toolkit for hedging and shorting in some detail, to serve as a reference for the future.

We currently are in the luxurious position to consider how to best protect accumulated profits as we navigate towards potentially more dangerous and difficult waters.

I plan to implement strategies to reduce exposure and hedge profitable positions across my portfolios over the coming weeks, because my probabilistic outlook has changed significantly as the strong turn-of-the-year season is coming to an end.

I anticipate a significant, temporary pullback in Q1 2025 as more and more mixed signals appear in recent data.

The exact timing of weakness will be very hard to predict, but the market is already switching gears into a more volatile mode – counter-intuitively that could initially materialize to the upside into the US presidential inauguration.