Sentiment has been compressed for weeks, not making lower lows, and the markets finally exploded today.
It's possible that a correction has been in effect in SPX and other indexes since 2004. The chart below shows that the recent correction is almost identical in percent as the one in 2004: about 9%. It's plausible that it is done. The bullish percent of NYSE charts more clearly shows the correction I am talking about.
However, I am a realist and live on my money. I will be away for most of July. So I have sold some of my more agressive long positions on today's close and redeployed along the lines I have discussed in some of the recent portfolio posts. I am still long and committed, but I have decided to reduce volatility further as a prudent provider. Plus, who can argue with 5% money market funds at Vanguard for part of the portfolio while on vacation?
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