|
The warnings were loud and clear prior to the tech meltdown and you had to be totally out of touch to not see the writing on the wall as to where the housing boom was headed.
The warnings today are not nearly as loud or obvious for that matter, but they are there.
For the last 4 trading sessions I have slipped into cash ever so slowly and I plan to follow one of two plans for better or worse.
Plan A- Sell equal amounts each day until I reach my max cash position ( 70% )on May 18.
Plan B- If between now and the 18th the SPY MACD gives a clear sell signal I will go to the 70% cash position that day.
Of course I have a plan C if all goes against me, but that simply involves looking stupid.
BTW, I'm looking for a 4 to 6% correction as opposed to the end of the world.
|