Graycell Advisors


The month of October has started on a very volatile note. The intensity of the downside move was evident in the sharp decline in stocks on Wed, Oct 10.

We suspected that concerns relating to trade tariffs, upcoming elections, a stronger dollar, and forward earnings guidance would be evident during October. Thus, the model portfolio exposure was reduced going into October. However, the unexpectedly sharp rise in yields over the past few days, following comments from the Federal Reserve Chairman Jerome Powell, became a rapidly growing burden for the market to bear and it capitulated.

Typically, sharp market declines are also accompanied eventually by sharp rallies as the market struggles to find a state of balance. Though such sharp drawdowns, like the one on Wed, are infrequent, drawdowns or declines, in general, are quite frequent and the market is typically in a state of drawdown 60% of the time. One has to adjust accordingly. 

The market environment has turned quite unfavorable in a very short period, and if the model portfolio was mostly in Cash then that's where it would remain till the end of the month. However, that is not the case presently and the model portfolio is 75% invested. As a result of rising uncertainty in market conditions and a shift in market trend, the model portfolio will be closing the following positions on Thu, Oct 11. 

1. Transenterix  -  TRXC
2. Affimed NV  -  AFMD
3. Funko Inc  -  FNKO

Thereafter, the model portfolio will have 5 positions left.

Any further adjustment, if required, will be done after the week is over, and an update will be sent out on Sunday. 

For any questions, kindly contact us at or simply use the website Contact form.

Graycell Advisors


Graycell Advisors, and its affiliates, officers, employees, families, and all other related parties, collectively referred to as ‘Graycell’ and/or ‘we,’ is a publisher of financial information, such as the Prudent Biotech and Smallcap newsletters. Historical performance figures provided are hypothetical and unaudited, and based on our proprietary analysis and system performance, back-tested over an extended period of time. The performance results obtained are intended for illustrative purposes only. Past performance is not indicative of future results, which may vary. All stock and related investments have a degree of risk, which can result in a significant or total loss. In addition, smallcap segment is characterized by much higher risk and volatility than the general stock market. The Information contained herein does not constitute a personal recommendation or takes into account the particular investment objectives, financial situations, or needs of individual investors. If you decide to invest in any of the stocks of the companies mentioned in the newsletters, samples, alerts, etc., sent to you or available on our websites, you can and may lose some or all of your investment. You alone are responsible for your own investment decisions. We are not liable nor do we assume any responsibility for losses incurred as a result of any information provided or not provided or not made available in a timely manner, herein or on our website or using any other medium.  We also cannot guarantee the accuracy and completeness of any information furnished by us. Graycell is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. We may or may not already have existing positions in the stocks mentioned in our reports. Our models are proprietary and/or licensed and can be changed or revised based on our discretion at any time without any notification. Subscribers and investors should always conduct their own due diligence with any potential investment and consider obtaining professional advice before making an investment decision.