Record Breaking Rally

The current rally has been record breaking as the Nasdaq 100 is up for 11 weeks in a row for the first time since 1999. As a mean reversion trader and investor I don't expect to catch the tail end of record breaking moves. Im just happy when I don't find myself on the wrong side of them. Luckily I have managed to stay very modestly net long but today made some moves to get me closer to neutral. I strongly feel we will see a correction this week. Have a good night.

2 comments:

Shubh Desai said...

I picked up MUNI Bond ETF this morning and shorting SPY to hedge my long stocks. I think we are very close to a short term top, but if this is a final top in a bear market rally then I think this up move can keep going....

OriginalChaos said...

You should look at muni closed end funds. There's been panic liquidatiion there, and the universe of them is very attractively priced relative to NAVs for the first time in a while. If NASDAQ goes up for another 11 weeks you'l likely make out ok. If NASDAQ hits an air buble the closed end will provide substantial capital gains. Back up the truck! I have.