Check this out http://www.investopedia.com/terms/b/bullbearratio.asp
Right now the ratio of Bullish advisers to Bearish advisers is reported to be at extreme levels of almost 4:1
When everyone is on one side of the ship, it starts to list, and then the stampede to the other side occurs.
Just something to think about.
We are extended.
I sold more stock and ETF holdings into the strength on Friday. 90% cash now as we head into the year’s end.
I am very interested to see if we get selling in January 2014. I will be a spectator of market action, or taking quick and small trades until January 2014 is over.
2013 was lucky for those who owned most stocks. The key is to make sure you participate when the market is going up, if you are long stocks, but make sure to have minimal exposure if the trend breaks. It stands to reason that many profitable portfolios will wait to incur the gains made in 2013 by cashing out in 2014, so I await that possibility.
As Dan Fitzpatrick, from StockMarketMentor.com would say, if you want to gamble, go to Vegas.
No stocks on my watch list now. Enjoy the rest of the year.
Do you stay or do you go?
Our performance vs the S&P 500 since this blog began. The Blue is our performance, the S&P 500 is the Orange line. I hope we can keep it up.
The S&P 500 has not visited the 50 Week Moving Average even once in 2013.
It has been a powerful bull run that is very extended and in need of a correction, so I am on defense. Not short, but on defense.
Here is how I see it:
We are on the home stretch for 2013. Can markets go down? Yes. I would play defense here until January 2014 and see what the big money does with the amazing profits made in 2013.
See if you agree.