Good Guy, Bad ETF Structure

Avatar photo Doug Kass on June 24, 2026

If the daily average volume in the $JOET ETF was greater than it is I would be much larger in this short for the reasons mentioned earlier this week.

Specifically, the quarterly rebalancing for the momentum-based fund is disadvantageous in a market with violent swings and rotation.

This helps to explain the ETF’s underperformance relative to the momentum indices and other momentum-based ETF.

Good guy, bad structure (with one hand behind his back).

Position: Short JOE (TS)

Things I Did Today

Avatar photo Doug Kass on June 24, 2026

Here are today’s things: 

* Added aggressively (again) to cannabis: $VRNOD at $5.35, $GLASF at $11.80, $GTBIF at $7.12, $TRLV at $8.06 and $MSOS at $4.43.

* Shorted more $JOET at $45.33.

* Repurchased consumer staples: $KMB at $105.15, $KO at $81.01, $PG at $151.37 and $PEP at $142.01. 

Position: Long MSOS (L), GLASF (S), GTBIF (S), TRLV (S), KMB (S), KO (S), PG (S), PEP (S), VRNOD (S/M); Short JOET (S)

Things I Did Today

Avatar photo Doug Kass on June 22, 2026

Here are today’s things:

* Shorted $SPY at $749.07 and $QQQ at $743.67 — covered SPY at $744.80 and QQQ at $737.99.

* Added to $JOET short at $45.64 and $GRNY short at $27.63. 

* Shorted a package of high-beta tech.

* Shorted more $MS at $227.32.

* Shorted more $IWM at $297.07.

* Added to longs $MSOS at $4.76, $MSOX at $3.00, $GTBIF at $7.55, $VRNOD at $5.55, $CURLD at $9.73 and $TRLV at $9.40.

Position: Long MSOS (L), MSOX (VS), GTBIF (S), VRNOD (S), CURLD (VS), TRLV (S); Short high-beta tech package, JOET (S), GRNY (M), MS (M), IWM (S) 

Speculative Short Basket Update

Avatar photo Doug Kass on June 22, 2026

Into this morning’s market ramp I have put back on my speculative short basket.

This is my third foray into this.

As mentioned in my GRNY ($GRNY) and JOET ($JOET) post (previous) this typically is a very very short term and opportunistic trade.

A true rental.

Positions: Short High Beta Tech Package

Why I Have Targeted Shorts in GRNY and JOET

Avatar photo Doug Kass on June 22, 2026

* Among other reasons, I now want to be short momentum. 

I plan to aggressively expand my ($GRNY) short now and to continue to modestly expand my ($JOET) short (despite my fondness for its portfolio manager Joe Terranova).

Let me give you two straightforward reasons for my tactics:

* Both ETFS are grounded in momentum-based investing. Here are the holdings of GRNY (GRNY Holdings – GRNY GRNJ GRNI | Fundstrat Granny Shots ETFs)  and JOET (JOET – Portfolio – Virtus Terranova US Quality Momentum ETF | Morningstar).  Given my increasingly negative near term market view  I want to now be short momentum (i.e., the leading edge of market leadership).  Shorting these ETFs satisfies my objective of shorting momentum and conforms to my conservative risk profile and appetite, as, for me, it is too dangerous (save very very short term forays on the short side) to position short in SNDK ($SNDK), MU ($MU), AMD ($AMD), INTC ($INTC), AMAT ($AMAT) et al.    

* Both ETFs rebalance with strict multi month disciplines. This disadvantages both ETFs in the event of a violent change in sector leadership. In other words, why be long a momentum based ETF if one hand is tied behind its back?

Any questions about this, please comment in The Comments Section.

Short GRNY M JOET S