This update is in reference to our latest model portfolio update, 28 Stocks for December 2015.
On Friday, December 11, the S&P 500 declined -1.94% and the VIX spiked 26.1%. We do not think this was the start of a panic decline and think a rebound on Monday is more likely than not.
On Friday, December 11, KBR Inc. (KBR), Royal Dutch Shell plc (RDS.B), Deutsche Bank AG (DB) have reached short sale targets, having declined -11.83%, -10.39%, and -9.77%, respectively. These positions will be assumed closed at the end of trading on December 14.
There are no stop loss targets for our theoretical long stock positions.
For the MTD, the Core and Opportunistic long models are down -3.78% and the S&P 500 is down -3.25%.
Stocks in the Core short model are down -10.58% for a theoretical short sale gain of +10.58%. Stocks in the Opportunistic short model are down -9.19% for a theoretical gain of +9.19%.
The only difference between the Core and Opportunistic models is the use of portfolio wide return targets, which on occassion can trigger 70% and 100% cash positions in the Opportunistic models. The Opportunistic short model has assumed a 100% cash position since the December 8 close.
The theoretical Core long/short model is up +6.80% MTD and the theoretical Opportunistic long/short model is up +5.41%.
For a table of updated price targets and returns please visit us at jstephencastellano.tumblr.com.
Please see our disclaimers and disclosures.