When I provide my daily trading plan tomorrow, I will be 100% in cash – something that doesn’t happen all that often. At the close on Friday, I proceeded to close out all eight existing positions in my portfolio. But let me be clear, I’m not some dooms-and-gloom guy calling for a market crash on Tuesday or any day in the near future. Instead, I simply concluded that the risk at this stage of the rally was much greater than any reward that could be had. As a result, on that conclusion that came from a multitude of reasons, I proceeded to close out one position after another.
What I believe we could see this upcoming week is some selling, perhaps similar to what we saw that followed the rally back on 1/5 of this month, with a worst case scenario of what we saw on 11/8 and thereafter for two weeks.
So here are my reasons for selling.
