As I wrote in Monday's post, I think the market is looking overheated at this time. I've sold pieces of my positions in the SPY and the QQQQ's today in an effort to begin raising cash. If the market returns to 20 or 50-day moving average, I'll take a fresh look at it and decide on a good re-entry point. For now, I've decided to lock up the profits.
I've also mentioned in prior posts that I think the SDS, the ProShares Ultrashort S&P 500, could be a good hedge when the market takes a dip. If you look at today's chart (I use Stockcharts.com), you'll see it made a new low at closing today at $32.40. The downside pressure is starting to wane on this -- if the market falters, I expect this to rise to about $35 or so.
Obligatory disclaimer: Past results do not guarantee future performance. The suggestions above are simply suggestions and the blogger is not liable for any losses incurred as a result of actual investment activity on the part of the reader.
Happy Trading!
Queen of Charts
Wednesday, March 10, 2010
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