Monthly Update, February 2024
Past performance is not indicative of future results. Trading is speculative and involves risk of loss.
View Tearsheets here: PERFORMANCE DETAILS - Soaring Pelican
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The Big Picture
The S&P continues in bullish territory despite some structural and fundamental weakness. We note that in the short term, the Nasdaq has dropped its leadership role and is beginning to underperform the S&P. It is too early to call a top, as momentum is clearly to the upside. Nonetheless we believe there is more downside risk than upside potential in the short term. We would advise holding positions and tightening stops.
Recent Program Performance
Although a low volatility uptrend is not our favorite dish, as long as we can find some movement there is an opportunity for profit. This month trading possibilities on the intraday timeframe were scarce, but the Overnight Advantage program locked into a few trend trades on the daily time frame.
Our Blended program achieves a steady risk adjusted performance by taking advantage of multiple time frames. When volatility dries up on the intraday level it typically means that there is a trend developing on the daily time frame. The Blended program can capitalize on both.
It is important to note that short term traders cannot compete with "buy and hold" when it comes to a steadily up-trending market. The advantage our programs offer is the ability to achieve our returns with very little time exposure to the markets. Additionally, we are able to capitalize on situations when the market is falling, and indeed some of our best trades occur on the short side during uptrends.
Our Outlook
There is far to fall from these levels, but a wise trader never tries to call a top. As the market levels off we are seeing that overnight movement is becoming larger than intraday movement. This indicates choppiness and uncertainty, and it may mark the beginning of a frothy top. We are still long biased.
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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