Pretty much everything is higher. The market continues under easy money to frustrate the bears. Without a doubt the difficulty has been to stay long through the bottom in March 2009 despite the bad news and tepid earnings etc. Particularly when you are constantly inundated with similar charts on a regular basis.


Staying the course, ie, long, is difficult when every couple of weeks, short-term something flashes a sell signal. This obviously is not a sell everything and go short…rather, take profits and look to re-enter lower. A neat trick if you can do it on a regular and accurate basis.


Add this chart to your analysis and you are starting to get itchy to sell before you lose all your profits. It is true that to really make money in the market you need to use your initial stake and the market’s money…profits, to compound your returns. To do so, you must sell for a profit and re-invest [buy low] to sell higher in the future. Hence the hand-wringing.

I have been mostly selling winners and rotating into unloved sectors. I’ll have a little list of some swaps I completed today.