Paring Back on My Leveraged ETFs

I sold out all my leveraged ETFs Thursday. This rally has come quite far, and though I think there is more upside to come, I think the probability of a pullback is high.

I was very long, and I am still long but I now have a pile of cash I intend to put to work if the market goes down. If we really begin to roll over, I'll get flat or perhaps net short. But if the market appears to be going higher, I'll buy back in.

For now, as a trade, I am cautious.

Comments

[TraderRob:]

I agree the market must sell off from these levels. Among those of us who follow "top down" signals along-side sentiment and momentum, this market has jumped off the track. What I find most significant is the apparent ability of bank stocks to gain every time earnings for other banks come in better than expected. Investors' optimistic take on Banks and Retailers will not stick. Take a look at these retail stocks, many of which are trading upwards of their 200 day SMA's!!!

For those who want to stay in equities, find somewhere to hide that hasn't had a run. The best "non-short" positions are gold or T bills.

Apr 24 01:31 PM

[squark62:]

toro, i've been watching (waiting) for a pullback since April 9. everytime it looks like it will happen, buyers are running in like they've missed the rally. there's too much desperation it seems. i want to be optimistic but i don't see any new catalysts. in fact all the rave over these terrible earnings is perplexing to me. so they beat. there's nothing good about beating estimates this far low and have the market run up like this. some people have lost their mind. i've been and still am balanced delta neutral since April 9..

Apr 24 02:18 PM