Taking Profits In Chevron (CVX), Adding to Another

With the August correction being firmly in the rearview, and the market approaching its old highs again, we have been looking for value in efforts to eek out a few more gains before the year-end; (We have already cashed out of most of our big winner in UPRO (S&P 500 Long X3 ETF).

We have also been taking profits in banks JP Morgan (JPM), SSO (S&P 500 Long X2), Disney (DIS), and we lost another $100 in hedging costs to SPXU (S&P 500 X3 Short ETF). Now, however, might be a time to start considering shorts again, since the VIX is low (‘when the VIX is low, time to go’).

We have reduced our position in UPRO by more than half since we have reached old highs (resistance).

The only place I see value in, at this point, is biotech and energy. So, we have been adding to LABU (X3 Long Biotech ETF), even though it was up 20% yesterday for us, and Continental (CLR). In order to not have too much of the portfolio weighted in energy, we are selling Chevron (CVX) for an 8% gain (Subscribe For Real-Time Portfolio Alerts).

I miss Chevron, and its comforting 5% dividend. However, the stock is now overbought (see RSI on chart), and is at resistance of the 200 day mavg (black line). Will re-enter on a pullback.