Since November 15th , just 6-months ago June Dow Futures have rallied 3,000 pts. That’s a hell of a freight train higher. If you look at my old posts, basically since December I have have advised staying long, but with some cheap puts below playing for the eventual correction.
The “sell in May and go away” folks are taking the pipe here so far during the first half of may. 1462 has been the low. we’ve rallied 649 pts in 20 days. Not something those folks are probably publicizing or crowing about in their over priced news letters.
I am a believer in big round numbers attracting interest. At this point that’s 15,500 or 16,000.
I ‘d still be long, but with sell stops below to get me flipped short when the cleansing eventually comes.
I have no idea if that cleansing starts at 15,500, 16,000 or even 20,000. Quite honestly, anyone who is advising selling this market is just trying to catch lightening and then spend the next year or so drumming up business based on their prescient “call”.
I keep it pretty simple. Stay long your stocks. Have protective sell stops below the market trailing your profits. If you bought anytime since December 1 you have to have stumbled into a great winning trade. Hold those longs, but adjust your stops.
If you are a speculator, I’d have resting orders to sell YMM at 15,490 to 15,590. Be a scale in seller there.
Be ready to run if if legs up higher however.
CER