The S&P 500 is still out of correction territory for its fourth week in a row. It closed just 1 point higher than last week’s close. And still remains 8.7% below its all-time high set in September.
The daily chart is not looking good. On Lunar New Year’s day (February 5th), the market met resistance at its 200-day moving average.
As I mentioned in my last post, the Market and economy appear strong. But because of the chart, I’m bracing myself for a rough ride.
That being said, I continue to stay the course with my strategy. If we make all-time highs again, I’ll look to take some profits and bring my cash equivalents to about 25% of my portfolio. If the market tanks again, I plan to wait for a 30% decline in the S&P 500 before making more purchases. I’ve already made purchases at 10% and 20% decline levels.
I just checked both of my individual stock portfolios today. One has 18% cash equivalents and the other has 19%.
Is the market getting ready to tank again? Or will we power through to new all-time highs? Let me know what you guys think.
How are you guys handling the market? Share your thoughts by commenting below.
I wrote this article myself and it expresses my own opinions. I’m not receiving compensation for it (other than from Wolves Of Investing), and I have no business relationship with any company whose stock is mentioned in this article.