Clearly one of the weakest days this year. Although most stocks in my portfolio are “strong” not a single one was able to move up and buck the trend today. By “strong” I mean that they are trading near their respective ATH (all time high) or 52 week high. The way my portfolio acted today tells me the trend could change. I annotated the S&P 500 chart on my public list accordingly. We obviously shifted to a sideways market a few weeks back. We are still trading within that pattern. But if we move lower and the head and shoulders pattern resolves to the downside the ensuing down trend will probably drag down all sectors.
I see quite a few red flags. Be cautious. So far this has been a good year. But now the summer doldrums might be upon us. Clearly not a time you want to be extremely aggressive. I might just sell one third or one half of my positions in order to reduce my overall exposure and reduce risk. The next two weeks will be telling.
When in doubt reduce overall exposure.
Have a great evening!