Cash is King!
In these times of uncertainty the strategy that I put to work is called: Cash is King! This is when I take a look at what I have on my sheets and if it doesn't make sense it's gone. Could be a short, could be a long, I could be up money in the position, or down money. I don't care. If there is not a good reason to be involved I get out. No questions asked. Why waste money when I don't have a feel? Plus, from the long side, the market has been able to bail you out of bad positions. If you bought something too highly priced and did not like it anymore, chances are that you could offer it flat and get taken within a few days.
Now, with so much emotion in this market and people waking up to the fact that we may not go one way forever (up), in my opinion it is best to let the dust settle and get back in when the signs look a little better. The trend certainly is your friend, and in the short term it doesn't appear we have a trend. Keep the stops tight and let the market guide you, at least that's what I am doing! Have a great weekend!
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