8 Comments

The market breadth is still going strong despite the complacency shown up in AAII as you pointed out :) There is no sign of reversal yet despite the overbought and overextended market.

Managing the position (lock in profit) in this extended market is the priority.

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Need to stay vigilant with sentiment getting stretched but breadth still good here.

Agree no harm in taking profits along the way. I also like to leave a small runner as long as longer-term MA's not violated (I've been using the 65-day EMA). That works well in strong trending markets.

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Markets will correct when least suspect. I agree this can last into 2024, it's better to prepare than predict.

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Yes read and react to the markets as they evolve!

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Another great post, just wanted to wish you a Happy 2024. It's been great to get connected on substack and reading your excellent work.

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Thanks, Amrita!

I'm grateful we were able to connect as well. Keep putting out the great content, and Happy New Year!

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I will likely take off my short term positions in the first two weeks of January and take my trading size down in half. I don’t think we seen enough yet to really pull back on the long side though. Could be a further extension through January but I believe we have an increasing chance for some nice volatility over next few weeks. I like to think as clearheaded as possible when the markets pick it up a few notches, potentially.

Great write up.

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Appreciate the comments! At some point we will have a pullback, and I tend to agree with your timeframe. Can't keep going forever. But at this point I'm expecting pullbacks to be relatively shallow like the 3-5% variety.

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