You can see on the 10-minute chart of the SPY below that we have filled the gap left open from Monday’s rally. Yesterday at around noon, I notified 12631 members that I was lightening up my portfolio. As we work through the “acceptance” phase of a bull run, you can expect the price action to become increasingly devious, despite the overall trend still being higher. What that means is that you must tune out the noise even more and stay disciplined.
While we may stabilize at the scene of the gap-fill, I am not in a rush to buy this dip, just yet. My goal yesterday was to lock in hard-fought wins, such as in HAIN, and hold some dry powder until charts (and sentiment) reset again. I am not interested in threading the needle by putting on a bunch of shorts, either.
As the bull run becomes more obvious and widely-accepted, the margin of error for mistakes in either direction becomes increasingly tight. As such, I am patiently looking for a rotation from some of the large-cap technology stocks down towards the small caps and some of the other notable laggard sectors this quarter.
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Good commentary as always! Thx Chess!
Thanks Chess always! Could you give me your thought about PBR and AG, pick here ?
Obviously beaten-down here. Watch for a change in character next quarters in a market rotation to them. My style is to wait for those signs of strength first before entering.
Thanks. I don’t write but I read your post everyday and learn from you. Thanks for your all the efforts : )
I appreciate that. Thank you.