When the market caught fire 3 weeks ago, stocks in the portfolio had huge runs; some in excess of 50%. So, to be prudent, we trimmed positions back and took some profits. Sounds great. But, because I was so scared about putting money to work the first time, I never had the chance to truly benefit from the big move up. On top of that, when we trimmed positions, we also incurred heavy commission costs.
We did avoid getting taxed by trimming & rebalancing in most stocks, rather than selling the entire position for a capital gain. But, there is no denying the miserable performance of the portfolio. We made money and out-performed the indexes in a major way, but did not risk enough to make any serious money.
Now, however, we are in position to win. We doubled down on stocks in the portfolio back at support and did not forget about buying back the stocks that got us here the first time. Currently, the portfolio is in 50% cash (still very conservative) as opposed to the 80% we were in before.
Here is the S&P 500 below. This bounce off of the 20 day support(orange line)on unusually high volume signals that stocks are going higher. Also note, that the candlestick bodies finished exactly above the 20 for the past few days (each candlestick is a day), while only the wicks hung below (bullish).