Another Day of Indecision

We continue to hover around the highs after a brief overnight scare of the European variety.  Unlike the super intelligent bulls and bears who are confident on their directional conviction, I feel like a dark pool of water, waiting for the river to take me away.

I’ve embraced this uncertainty with a high cash position, currently hovering near 40 percent.  I also put on a hedge Friday, in $SDS, it was a 15 percent position that I’ve taken down to 10 percent.  I find hedges work best when they’re cashed out as soon as they’re in the money.  Otherwise they just sort of evaporate away and then they’re an anchor in the port when the market sets sail.

I sold out of CCJ and ANGI, both winners.  I sold the former because the chart pattern is sloppy and I don’t want to be in sloppy charts in an indecisive-frothy market.  ANGI was sold to lock in the huge gain and free up some money to rotate into my new position.  What’s my new position?

It’s Ford!  ‘merica

I like how quickly the stock rebounded this morning and where price currently resides on the daily chart.  I have a few other names I’m stalking, but nothing screams ‘buy me’ like they were the last few months.  Many setups are on pullback #3, which has the lower probability of success.  Therefore I have to either pass on the setups, or apply a tighter risk management either through a tight stop or smaller position size.