Good caution, Carpe. Speaking of insurance. . .Cigna blew away street and many other insurance companies earnings due out today. . .
Also, Asia and Europe markets were hot overnight. . .futures hot. . . gold grew cold. . .oil still warm. . .M2 assimilating. . .everyone expects several more rate hikes. . . so no fear there. . .
We traders have become high wire walkers. . . . .so our biggest fear is acrophobia. . . . . . .which is totally understandable as the Naz resumes its streak of new all-time highs. . . but as we adapt to our new surroundings, we set up a base from which we can move higher yet. . .
The question is how big can things get? How large will the internet be? To what extent will it affect the way business is done?
I still like selling the peaks and buying the dips. . . setting targets on both as a guide. . . using partial positions, this has been very helpful on our popular tech stocks. . .and especially LPTHA.
There is no doubt we are loaded with volatile tech stocks. . . but I continue to be bullish on this sector for the next 2 months. . .though I believe the volatility will remain, making it difficult to make gains unless you are either playing in and out of the issues carefully or are blind to the wild swings. . . or in our case. . . both of the above.
There have been many upward legs that I have missed playing this way, but if I wait long enough, the stocks often return to give a second chance. . .and in order to believe you "missed" a move implies that you would have exited at the proper high.
There will come a time to rotate from tech into retail, REITs, cyclicals and more. . . but I think we will see much higher highs for that to happen. . . at least one more big blast. As our babies reach astronomical heights. . .it is best to shift those gains into safer havens. . . thus gradually reducing our risk over time. . . . or into beaten down blue chips like T, WCOM, LU, or into foreign markets. . . telecoms, techs, etc.
The way things are going. . . I think we will see a terrible decline in the techs over the summer. . . even further than last summer. And I guess we just get used to the wild swings and find the best ways to profit from them.
Rande Is |
