I sold 2/3 of my SKF on Friday for about a 15% gain. The remaining 1/3 got stopped out on Monday in the 500pt DOW runup. I also covered a short on Baidu after it showed unwillingness to go down. This was a great exit as Baidu rocked to over $195.
I also sold a number of longs into the strength including UVM Ultra Long Russell 2000 ETF. It went up over 10% in a day and when making money becomes seemingly too easy and quick in the markets, its a sign that you need to slow down.
My plan is to ease back into the markets on pullbacks such as the one yesterday.
I am still about 40% long. Long in gold, oil, agriculture and China.
I am trading the FXI in and out. Holding a core position but buying on weakness and selling on strength.
I have no holdings in financials at the moment, but looking to get back into Wells Fargo WFC and Financial ETFs. Morgan Stanley showed great strength yesterday.
I caution not to chase this rally though. Earnings season is coming up around the corner starting about 2 weeks away. This period is usually very volatile and stocks that have fun up prior is likely to sell off.
I am sitting on 20% gains this year. So I am going to sit tight and and be more selective in my entry points for equities at this point.
The reinstatement of the Uptick rule may be around the corner. If it passes through, we could see the markets melt up 20%+.
No comments:
Post a Comment