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SPY Ends Month with Strong Momentum - Up 10.7% YTD
It was in my thinking that the recent October pull back was a set up for the fall stock market rally by big money. By doing some selling big money forced some margin calls on other investors which in turn forced prices even lower as some failed to meet their calls and pony up more collateral … and, with this, they were sold out of their positions. I felt third quarter earnings would be strong and thus far they have been and stocks would run. Thus far, they have. In addition, some fearful investors sold and those investors with a stronger mind set bought.
Old_Skeet got on the coaster and averaged in with five buys which averaged about 1905 when all was done. Currently, I am a happy camper with a gain of about six percent on this spiff as of the 31st. Should the S&P 500 Index reach a target of 2100 by year end then this spiff will have returned a little better than ten percent.
Within my portfolio's asset allocation I reduced cash by about five percent and raised my allocation to equities by about five percent. I figure a good number of mutual fund's capital gain distributions will be heavy this year and with this I will automatically rebalance as these distributions are paid as I take all fund distributions in cash.
Some may say, I got lucky … Perhaps so, perhaps not. Thus far, it was the correct read.
Should equities continue thier upward price march into and through the first quarter of 2015 then I may sell some more off into this strength. I'd like to be five to ten percent light from my neutral allocation to equities come summer. After all, we have a blue moon coming on July 31st.
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Comments
It was in my thinking that the recent October pull back was a set up for the fall stock market rally by big money. By doing some selling big money forced some margin calls on other investors which in turn forced prices even lower as some failed to meet their calls and pony up more collateral … and, with this, they were sold out of their positions. I felt third quarter earnings would be strong and thus far they have been and stocks would run. Thus far, they have. In addition, some fearful investors sold and those investors with a stronger mind set bought.
Old_Skeet got on the coaster and averaged in with five buys which averaged about 1905 when all was done. Currently, I am a happy camper with a gain of about six percent on this spiff as of the 31st. Should the S&P 500 Index reach a target of 2100 by year end then this spiff will have returned a little better than ten percent.
Within my portfolio's asset allocation I reduced cash by about five percent and raised my allocation to equities by about five percent. I figure a good number of mutual fund's capital gain distributions will be heavy this year and with this I will automatically rebalance as these distributions are paid as I take all fund distributions in cash.
Some may say, I got lucky … Perhaps so, perhaps not. Thus far, it was the correct read.
Should equities continue thier upward price march into and through the first quarter of 2015 then I may sell some more off into this strength. I'd like to be five to ten percent light from my neutral allocation to equities come summer. After all, we have a blue moon coming on July 31st.
Old_Skeet
@Old_Skeet, anytime you can book profits that's a win. On whether it's luck or skill, it takes a bit of both in my experiences.