I feel things are getting fairly strained in this market. I just read where the PE ratio of the S&P just hit 30. That can't be a good sign. Looking at charts for the wider market, it seems that classic top signals keep getting overcome. I'm waiting for the 'this market is invincible' type quotes to come up. That will be the last straw. I am becoming more and more conservative in my naked put trades. The prices keep getting higher, which takes trading capital out of my account, and I am waiting longer and longer before making those trades, just to reduce risk.
The thing is, thanks to AIM rules, if something does tank, I am ready to take advantage of a bear market, even if is sudden and quick, which is all we've had since 2009. I've broken my cash into different income-producing vehicles, so half of my account isn't just sitting there doing nothing. I have periodically gone through my mind about how I would go about refilling my actual trading capital, if it were to be used up. Not really much need to worry about it at this point, though - the market is still making new highs. I just don't know how much longer this can last - we've got to be approaching historic numbers here, as far as how much time it's been since the last sustained bear market. I keep seeing more and more hints that, historically, have been signs that the bull market is about to end. I just seems very stubborn about giving it up. That tells me that when it does go, it won't be pretty.
As far as individual stocks in my account go, I did make one change since last entry. I got rid of the NKE and replaced it with SWK (Stanley-Black & Decker). Better dividends and I feel SWK has more upside possibility. Neither one have been actual dogs, but SWK is closer to being one.
Current stocks in my account - INTC, VZ, SWK, DINO, DOW
No comments:
Post a Comment