The set up was obvious. Market had already been strong in spite of rates going up. But today rates dropped 5bps and markets absolutely busted out, led higher by rate sensitive high beta stocks +3.2%. For me, that’s too much to buy into and if I’m long with high beta stocks +3.22%, I sell.
Since I was fully long into today, I liquidated all and locked in gains of +113bps. I don’t have any desire to make more and will not be lured back into the market until late afternoon.
My gains are near +4.5% for January, a success. I won’t do anything to spoil it and since I’m not a greedy man, I’ll re re-enter the market cautiously, wade into it methodically like a scientist, calibrating the perfect portfolio for tomorrow’s opening salvo.
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