Not fully cashing out Thean. Just taking the some cash to the bank on many super performers (see how below).
As I said, this whole thing is not going much higher if AG raises 2 to 3 more times. He's determined to slow growth. The voracious animal called "consumers" are buying things with all this additional wealth and that is his real problem.
I also think that margin selling will accelerate a slide, as I am seeing a pattern developing for the ST.
Down 1, back up .4, down again 1, back up .4, etc. This has to be generating margin calls. I don't know about your broker, but next time you talk to them, ask them how much margin buying power your stocks are spinning off. It's shrinking EVEN IF YOU DON'T USE MARGIN. Your buying power is still less. That's going to pinch people that do use it, and force them to come up with more cash or SELL.
I have sold some positions higher, then I buy back 2/3 of the positions lower, to cut exposure. These are IRA positions, so they generate no tax issues. These are issues I can't afford to NOT be in.
As well, all the stocks have split and I can generate some new cash to bank and wait for lower prices or follow some new stocks.
I did sell all my ETEK, as the deal looks like it will take longer, and the spread has widened. If it gets juicy again, I will daytrade it.
Actually, that's a good idea. I am going to try to day trade some of these vs ST or LT buy/hold.
Most of us have made obscene amounts of money by concentrating in the BOWS© stock strategy. I want to bank some of that, for a number of reasons.
In summary, real strong momentum is waning right now. The average monthly insider selling is 1.2 billion/month. Last month is was 22 BILLION. (See the WSJ article tomorrow morning for details). The sectors and picks for me haven't changed (I like our boat). It's just the wind, right now.
All in MHO.
Steve |
