Author: Ronald Guerrini
Covestor model: Breakouts and Reversals
February was a very poor month for the Breakouts and Reversals model portfolio.
This month was a lesson in not letting an opinion about market direction overrule the trend. The model portfolio lost about 4.3% in value as the major stock benchmarks added about 4%, leading to an approximately 8% under performance for the month.
This was due to a short bias that was maintained too long despite evidence to suggest the market was not falling. This position should have been cut sooner.
