Paul, Welcome to the light. O.K., folks, you can jump on him now. <G>
This market has made me harvest some of my longs, especially the gold stocks, where I am very light again. I still like them, but in the mid 20s, I think Newmont got a bit ahead of itself. Ditto for Barrick. I now only own a third of each.
I really haven't done much in my cap app portfolio. Many of the country CEFs are up 10-30% in the past few weeks, but I feel they have much further to go and I don't want to take a chance on missing them. I can be a bit more dogmatic on the golds because of my platinum and diamond positions, which correlate fairly strongly with gold. Some biotechs, like Ligand and Incyte are up big time, but I am in for the duration with these and will only take thirds off at higher prices. And a lot of my bios are still in the toilet, so, as I plan to let the losers run because I like them as cos., I can't cut my profits on the winners. Though I am adding a few puts in my 90/10, I am still very light there. I think the Xmas tall tales have just started and I will able to buy puts cheaper in Dec and Jan.
My income portfolios are where I am making the largest changes based upon the rally. In my IRA, I have taken money off the table in some slightly bullish spread conversions such as Dell, Lucent and Keane. What is great is, though I sure didn't expect it, the out of the money put portions of those spreads (the spread conversion is long stock, short at the money call, long out of the money put) have held up amazingly well given the price appreciation. So, I make money on the buy write and lose very little on the long put. That is nice in the income area.
I have also taken some profits on my bull bond spreads and have totally sold all long bond positions of all types. I have a lot of bond bear credit spreads that seem to be working real well and the tilt in that area is definitely bearish. Yes, these are all hedged, very low risk positions, but when I see daylight that annualizes real well, I punt.
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