Mr. Market treated us to nice sized pullback today and although we prepared for this occurrence, you never are quite ready for it to occur as it plays out in different ways. For example, our oils were crushed and we took several stop outs as a result. We also had built a decent sized short in the DIA which was down the least in percentage terms as the big caps held up much better than the small stocks. Eventually that was taken out on a trailing stop as well.
All in all, through stops and a few trades, we reduced our portfolio size again today as the decline did begin in earnest. The question now is do we get the two to three day variety pullback and a surge or something more. We will have to consider that after more of a decline if in fact that is what occurs. There are, however, a number of factors at work that may help the market hold up the remainder of this week and then we get the real decline with the primary factor being end of month window dressing an potential economic news.
Right now your focus should be on safety and capital preservation. If you caught a good chunk of that run this month, you need to make sure you don't give the majority of it back. A good pullback here will set up trading into the end of the year. If you took profits on the way up and are mostly in cash or hedged now, then you should be in good shape when the next setup occurs.
Last note is on the metal stocks. They have acted heavy of late despite the continued run in the metals themselves. I ended up taking all my metal stocks off the table. I do not like the setup here at the highs for continued exposure.
All in all, through stops and a few trades, we reduced our portfolio size again today as the decline did begin in earnest. The question now is do we get the two to three day variety pullback and a surge or something more. We will have to consider that after more of a decline if in fact that is what occurs. There are, however, a number of factors at work that may help the market hold up the remainder of this week and then we get the real decline with the primary factor being end of month window dressing an potential economic news.
Right now your focus should be on safety and capital preservation. If you caught a good chunk of that run this month, you need to make sure you don't give the majority of it back. A good pullback here will set up trading into the end of the year. If you took profits on the way up and are mostly in cash or hedged now, then you should be in good shape when the next setup occurs.
Last note is on the metal stocks. They have acted heavy of late despite the continued run in the metals themselves. I ended up taking all my metal stocks off the table. I do not like the setup here at the highs for continued exposure.
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