So, not only did we get a huge move up today- up 125 points, but we gapped above the 50 – a bullish sign. Covered my shorts when we were up 67 points, since we gapped above the 50, which is different than breaking above the 50. So obviously a good day for the portfolio but, it feels sort of ominous. Nothing in this market is too good to be true. For example, if you were to take the moving averages away, we would look like we are in a series of lower highs, which points to a roll over of the market – bearish. I am now at a new dilemma, take profits to reduce risk but make less money over time, or keep the positions going, keeping the risk, but building long-term wealth instead. Trust me, easier said than done because it is hard to tell where we are in the economic cycle. You can read all of the advice from pros that you want but even they too are usually wrong. Looking through my profit/loss statement of this year, I am realizing that I just need to hold stocks longer – commissions tear you apart; and while I also understand that this market is bipolar, these negative days cannot last forever, and it has been this sort of environment to trade since 2008. We are a capitalistic society- we want to make money. Plus, you cannot get a return with your money anywhere else. I might just trim into the strength of UPRO (S&P 500) near the close of the day- while I have BAC FWLT and TEX at dirt cheap, long-term prices. ( I bought BAC today because it is a best of breed bank that had a break-out above the 50 and a bollinger band expansion. Stop goes in at 7.69. See edudation- bollinger bands) Or starting selling calls to generate extra income. More to follow. Your thoughts?
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