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Strategies & Market Trends : Dividend investing for retirement

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To: Steve Felix who wrote (28691)2/4/2018 3:24:04 PM
From: JimisJim  Read Replies (1) of 34328
 
<"after three days in February I am below Decembers port total"> ... frankly I'm hoping this is a long overdue little correction -- every "healthy" bull run needs them... also note that the FED (for whatever reasons) made massive liquidity injections during Q4 of last year.

Lifted from a post by iso on his board -- and with which I agree:

<"But, with the market now oversold on a VERY short-term basis a rally over the next week, or so, would not be surprising.

It is the outcome of that rally that is most important to the current bull market advance.

This is what we are looking for to drive our next set of portfolio actions:

--If the market rallies back and sets a new closing high, the bullish trend will be confirmed and equity allocations will remain at target levels and hedges removed.

-- If the market rallies back BUT FAILS to set a new high, a series of actions will take place.
-- **At the point of rally failure, portfolio hedges will be modestly increased.
-- **If the subsequent decline breaks the previous low, the hedges will be further increased and tactical trading long positions will be reduced.>"

I post the above to illustrate what the big money folks with their algos are thinking and planning... it is illustrative of how "traders" think, plan and act in these situations... I should not need to remind that as far as my DGI PFs are concerned, this is just normal noise after a very long, non-normal year's bull move and the DGI PFs are structured to weather the storm regardless of whether this is a bull market dip/correction or a true trend reversal to the downside.

Personally, I would not mind seeing a big correction right here as my wife still is sitting on a very large pile of cash (about 35%-ish).

As always, time will tell...
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