June 1, 2009

"Sell in May and walk away." That is how the old saying goes. The common consensus this year is different. The bulls are coming alive! The bears are going into hibernation with their heads down.
While timing the market is always difficult, when we look back this fall, next spring or so...the sell in May and walk away signal will be genius. (We could even get a chance to sell the summer rally at perhaps higher prices, but why risk it?).
As an American, I wish this was a new bull market and will be on it's way to new highs, a once in a lifetime chance to buy at incredible prices. (we actually had a nice one in March, just need to sell those purchases now!!!). As a capitalist and a realist, I firmly believe that this may be a "once in a lifetime" chance to sell all stocks to at least re-coop some of the losses that most sustained in 2008.
There will be another chance to BUY, but for now, capital preservation is far more important!
The S & P target has been met. While there is still a chance to go to the 1,000 - 1,120 range, the downside risk is far, far greater.

5/26/2009

Bulls were in charge today. While our entry in March was timely the mistakes in markets are that they can get way oversold and way overbought.
While this market is way overbought you can still have up days like today.
We remain short term negative on this market. The more it rises the faster it will fall.