Monday, June 25, 2012

Market sell off No Surprise

Another day of moderate sell off in the Markets based on the breadth numbers I track.  This is hardly any surprise at all.  Friday was a positive day with breadth numbers skewed to the positive side due to annual Russell index reconstitution.  Overall distribution is taking place and the best place to be in is in cash.  I am expecting and hoping the sell off would accelerate in the coming days.  I nibbled in a few put options which worked out to be great in the last couple of days.  Other than that I am in cash mostly.  However, this isn't a time to be aggressively short either.  We are in a volatile zone.  Accept the fact that anything can happen in the marketplace and priority is to reduce your emotional toll by managing your risk effectively.

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