I'm Becoming Bi-Polar

Another very strong move up today on Wall Street... 2%, 3%, 4% depending on which index. The 1/3 of my retirement was in the small caps, so I caught 4% today. And seeing this strong move and the fact that I'm up 11% in just 4 trading days, I got out. Yep, I bailed. I hadn't planned on moving back out, but 11% in 4 days was tough to pass up.

If today wasn't a near term peak, it's close. A normal pullback is expected (remember, two steps forward, one step back). This step back should take the S&P back down to around 750 from it's current level of 830. Right around 10%. When we get there I'll get back in. Again. This time with all of the retirement.

If it works out as I've described, I will have gotten in at the equivalent of near the bottom.

I'm keeping in mind that my first move in and out was with 1/2 of my total portfolio and this recent move in and out was with 1/3 of my total. I made 5% the first time and 11% this time. As a percentage of my total portfolio, I'm up about 6%. In the grand scheme of things, I'm up 6% since August 2007. I can live with that. :-)

I don't want to swing trade like this, but until the primary wave 2 is solid I don't trust it. I'd rather be skittish than complacent right now.

I hope this pullback to 750 is the last one I have to worry about. I'll stay in until we hit 1000 or so.