It's late in this rally
If you look back to other times where the market has behaved as it is now, you realize that we are late into this rally. I have sold down a decent number of long positions this morning on that early strength looking to book some gains and get more careful. Although I do not expect a huge downdraft into year end, I realize that the risk isn't so favorable over the reward and that, after making a nice comeback into year end that there's no sense in risking a good years returns here.
What you do in your portfolio is largely a function of your recent trading as well as how you see the risk and reward versus your tolerance for pain versus gain. It's your call but as I've said consistently for a while now, the rally is getting long in the tooth and while the trend is still sideways short term, bullish intermediate, we are getting closer to a point of turning those trends around. Doesn't mean it will happen but that's a risk.
Gold starting to come in some and it looks like that squeeze is wearing off. I had a mind to short it but, again, I don't see the reason to take large risks this late in the year.
What you do in your portfolio is largely a function of your recent trading as well as how you see the risk and reward versus your tolerance for pain versus gain. It's your call but as I've said consistently for a while now, the rally is getting long in the tooth and while the trend is still sideways short term, bullish intermediate, we are getting closer to a point of turning those trends around. Doesn't mean it will happen but that's a risk.
Gold starting to come in some and it looks like that squeeze is wearing off. I had a mind to short it but, again, I don't see the reason to take large risks this late in the year.
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