Wednesday, after I had reached shutdown mode, we finally saw afternoon weakness/profit taking. It's been a while since this has happened. After five straight breathtaking moves higher, they finally decided that rather than stuff the shopping cart, they should put some back out.
These kinds of moves are rare and this one comes at a time where it had to in order to make the year for many a portfolio manager and bonus boy. Now that the measured targets were touched on Wednesday and we saw the first bout of profit taking ensue, you have to be even more careful as a decline is even more imminent. Today should be a feel good day of trading and Monday could easily open higher once more, but after that, all bets are off. I will look to position myself more cautiously today as I await a decline that is likely on it's way. I'm not doing the Chicken Little thing here, just recognizing that all moves come to an end and even strong moves have pull backs. It's not too late to ring the register if you have simply rode the move higher. The exit is as critical as the entry. It's time to consider it.
These kinds of moves are rare and this one comes at a time where it had to in order to make the year for many a portfolio manager and bonus boy. Now that the measured targets were touched on Wednesday and we saw the first bout of profit taking ensue, you have to be even more careful as a decline is even more imminent. Today should be a feel good day of trading and Monday could easily open higher once more, but after that, all bets are off. I will look to position myself more cautiously today as I await a decline that is likely on it's way. I'm not doing the Chicken Little thing here, just recognizing that all moves come to an end and even strong moves have pull backs. It's not too late to ring the register if you have simply rode the move higher. The exit is as critical as the entry. It's time to consider it.
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