HERE IS WHERE I STAND
At present I'm 75% invested in SYNC, AUTH, ATNY and GSIG. It is becoming increasingly apparent that my 25% cash position may remain intact for sometime to come. My short-term trend indicator is now firmly in the negative after flipping to the bearish side on May 10th. It would take a rally of some consequence to get it roll back over, allowing me to move back to a 100% invested position.
Of some concern is the fact that my intermediate term trend indicator is 1-2 bad days away from switching to the bearish side as well. If this were to occur, I would have no choice but to allow this risk buffer to take the portfolio into a 50% cash position. My opinion of the market makes little difference when faced with my primary function, which is capital MANAGEMENT. Capital mismanagement means allocating down regardless of circumstances based on X, Y and Z. While this may work nine times in a row, it only takes that one time to blow you out of the water for good. I'll say it once again, you need a means of saving you from you. A risk management solution that makes sure you are around to fight another day. I went over this in detail some days ago.
I am politely praying to the all-powerful market gods tonight that they allow me to remain 75% invested. Taking the portfolio down to a 50% invested position would require some very tough asset-allocation decisions as I strongly believe in the long-term viability of all my current holdings. I also have strong technical evidence that suggests a substantial bounce is imminent.
I have made a promise to the market gods that if they allow the markets to bounce from here I will help a variety of hungry birds from all over California and perhaps stretching all the way into Nevada. I am of the opinion that they will take my offering seriously.
I must say that despite the sell-off in the markets, the current portfolio has held up relatively well. This is mostly due to the staying power of SYNC, which released its 10-Q today. Worth reading if you haven't already done so. Their metrics are blazing a path towards some very real profit growth in the coming quarters based on the year over year numbers. Any further positive news out of the company over the coming weeks has the potential to take us on a parabolic journey as market participants have this company twisted. I spoke about it in detail over the weekend.
That's all for tonight. Stay grounded.
