The S&P 500 is now trying to find traction on the 50 day moving average (green line). We are unsure if this is the beginning of the top or simply a buying opportunity at the 50. But, it doesn’t really matter does it. If stocks go higher from here, great. But if not, we have bought in on support (for example the 50 day on the S&P) and put stops below to sell half of a position if it breaks support. By not selling the entire position at once, we avoid much of the losses and still allow ourselves to trade around a core holding in the portfolio.
S&P 500 at the 50 day support (green line)
