Good news, the S&P 500 (SPY) and Invesco QQQ (Nasdaq exchange traded fund) have been hitting new all-time highs. This reinforces the stance I had that the SPY move down in mid-June was just a dip. It was a little intense at the time, but I definitely wasn’t communicating anything bearish to the Moxie IndicatorTM subscribers.
It’s always great to hear about the market reaching new highs, but it can make me a bit nervous, too. This is because there is always a pullback lurking somewhere and the longer we move up, the closer we get to that pullback.
I had called for a pullback in the Russell 2000 (IWM) and we got that this week. Now I am just waiting for the SPY and QQQ to take their turn. While they had great moves, they are also showing signs of being extended. A pullback would make for a great refresh of energy. At this point, I am mostly sitting on my hands and my current portfolio… waiting for that move down into support where we hopefully get some energy and fresh money flowing in.
Just make sure your timing is right and if you have positions that are profitable, you may want to consider taking some off the table so you have more to deploy when that pullback inevitably shows up.