RE: The inexorable climb continues18 Nov 2020 19:24
"These more extreme overbought, extended conditions rarely last long. We reduced our risk exposure in our portfolios yesterday morning via RIAPro.net:
“The market has gotten back to more extreme overbought, extended and bullish levels. Historically, such a setup has led to short-term corrections, or worse.
While the vaccine news this morning is certainly welcome, the markets have already priced much of that into stocks currently. Considering a vaccine won’t be widely available to mid-to late-next year, the economic weakness will continue to weigh on profitability for now.
As such, we are taking profits in some of our more egregiously extended positions and will use a post-Thanksgiving correction to add back to holdings at a cheaper level.”
Risk Begets Risk
Not surprisingly, I received more than a few emails chastising me for “bailing on the bull market, which is going higher.”
Such is hardly the case. We reduced our weighting in some of the companies which have had substantial gains over the last year. We remain primarily long-biased in our portfolios, but given the extreme technical overbought and deviated conditions; it was prudent to raise some cash and protect our gains."
https://www.zerohedge.com/news/2020-11-18/technical-setup-correction-coming