Last night we shared with members our decision to sweep some retirement funds to cash. Those funds were from the (+30%) gains from the March 23 reversal. With markets slightly more than (2%) below the recent pivot highs, we decided to take those funds and wait for May OPEX to reposition.
Thoughts going forward are outlined below.
SPY bounced decisively, finishing the day at highs. RSI is still above 50, while price action closed above the 21d.
Our plan going into the summer, the seasonally weaker months of the year follows below.
- If price action moves above the 200d we will look to repurpose this recent cash sweep back into long-only funds.
- If price action fails and moves lower, we will look for areas of support to hold. We’ll reassess at that time what to do next.
- We’ll also sweep another portion of our assets to cash should the latter case, failure, play out. We’ll do that either today or next week after assessing changes in open interest and gamma status.
- To be clear, this is my personal decision. This is not a recommendation. Consult your financial advisor before making decisions with your retirement assets.
- The recent sweep to cash leaves the remaining funds with the same balance, 44% equities, 44% fixed assets, and 12% alternative assets.
To be clear, we are not calling for a crash. We are simply protecting the 30% gains from the March 23 bounce. This is called prudent thinking.
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