CYPRUS HILL
Leave it to the Cypriots. Futures are down roughly 15 on the S&P, as another Mediterranean country proves to the world that the only positive attribute they bring to the table is a healthy diet. I won't get into the macro details of what is occurring as that is not my forte. However, I will postulate a bit about my plans for reacting to a sudden move in the markets during the week ahead.
I have maintained a 75% (25% cash) invested stance due squarely to my under-performance over the past 1.5 months. I don't necessarily like adding volatility when performance is lacking. It has been my experience that being conservative in the face of a lack of performance is a much more prudent stance than anything born out of aggression brought about by the zeal to play catch up.
A gap down tomorrow is not an invitation to act in any capacity. It is squarely an invitation to observe closely as different averages run across support after the substantial run to begin 2013. There will be those who insist on buying the open in hopes that a blip down will remain just that...a blip. There are those who will react to the events, taking down exposure or possibly getting short, with the thought that this marks an intermediate term top.
These are all hopeful gestures of analysis that take the form of buys and sells in the marketplace. I can't think of a time in nearly 20 years of playing this game that I haven't looked back on a macro inspired gap and wished I would have reacted FASTER. It has nearly always been the case that observing would have paid better dividends than simply reacting.
I have nothing to do tomorrow but to observe.
Just another Cyprus Hill thing.
