Guideline

I pulled up the SPX chart again today, which I do once every few weeks. We had broken below the 61.8% Fibonacci Fanline in late Steptember, which had also acted as a trendline for the monstrous runup from March. Even though the market has marched higher from the 1020 levels, it's just scraping the bottom of the 61.8% Fib.



Even though I do not trade futures (yet), a majority of stocks have a positive correlation to the big indices. The only divergences might come from Energy & Precious metal related names.

I'd gone from 10% to 35% cash yesterday. Today I sold off the entire lot of the biggest non-performer I had; WMT: cumulative 8% over 7 months. With the dollar geting weaker everyday, it'd bite into the margins WMT has on all the cheap imports from China.

I also further reduced my holdings on the partial sells from yesterday.