With the Islamic State on the move, cutting heads off along their way to Allah, western treasuries continue to gain steam. I cannot stress this enough to all of you lads, drunk about the water cooler, drinking gin from a water bottle.
There is a safety trade taking place, at the same time application software stocks rip through roofs.
This is what I am going to do.
I will collect another monthly dividend from my TLT position, then liquidate it in september. I just sold out of my ECOM position because it refuses to rally. I don’t have time for that, so I took a 3% loss. With the cash on hand, I am going to buy a basket of utility stocks–some today, others next week.
I am going to hold said basket through september, or until I am proven right or wrong (this gives me room to wiggle). The way I see it, buying utilities is a preferable way to fade this rally without actually fading it. I don’t want to just go to cash because my temperament doesn’t allow me to sit idle for long periods of time.
Longer term, I still own a crap load of stuff, from GILD to ICPT to SLCA to HAIN. If the market melts up, I will not miss it entirely. I am simply shifting my trading assets into a bomb shelter.