On July 8th I posted that I had taken profits and exited my stock and ETF positions. I exited when DOW was trading at approximately the 25,300 level.
Yesterday at approximately DOW 24,600 I purchased the following ETF’s: $MDY, $SPY & $SSO. Last Friday (@ approximately DOW 25,000) I purchased $SPHB & $XLG. On purpose I post my trades a day or two after making them and not in real-time, as I fear my readers may “piggy-back” my trades. If someone followed a trade that resulted in a loss I’d feel horrible about that. Everyone should trade according to their own style and methods, as stock trading is risky.
The majority of my net worth is invested in Real Estate Crowdfunding which offers a generous cash flow along with longer term capital appreciation. A small portion (approximately 5%) is invested with the robo advisor Betterment. Approximately 30% of my net worth is invested in a CD Ladder as well as the mutual fund SEMMX, all of which comprise my fixed income allocation. My final allocation is a short term trading portfolio which I actively sell put options and trade ETF’s. I buy the dips (or support levels) and “sell the rips” (exit on rallies to resistance levels). Yesterday morning’s plunge was the ideal setup for adding ETF’s in size. I believe the S&P 500 will be trading at the 3000 level this year. This is not to say I won’t exit my long positions before those levels are reached. I am mindful of overbought/oversold indicators and I use technical analysis in forming a trading decision to buy or sell.
For what it’s worth and regardless of the geo-political risks, I am getting Bullish. The market has had ever reason and offered every conceivable catalyst for a major sell off and its resisted such a scenario. Unless proven otherwise, I believe that in the short term, the path of least resistance is to the Upside!