Stocks were at a pivotal point last week as we stumbled along the 50 day moving average and feared a correction. After a batch of uplifting earnings reports Tuesday, the Dow rallied 150 points. So what do we do now after the move up? Trimming shares into the strength and taking a little off the table makes a lot of sense here. As much as I want to let my positions run, stocks have not made it out of the woods yet.
There is technical resistance looming ahead, more earnings to come, and May. As much as I hate following the crowd in May, the old adage “sell in May go away” has held true overtime (especially the last 3 years). Even if stocks give us a juke move this summer and go higher, it is always easier to sell and re-evaluate rather than getting stuck with losing positions. Thanks for reading. Follow me on twitter for daily updates!