"Don't worry about a thing,
'Cause every little thing gonna be all right.
Singin': "Don't worry about a thing,
'Cause every little thing gonna be all right!" – Bob Marley
We're not worried because we cashed out yesterday.
That's right, the Dow hit 18,000 and we took the money and ran, closing out over half of our uncovered Long-Term Portfolio postitions, pretty much everything that was up 40% or more, getting our CASH!!! off the table just in time to take a 2-week trading vacation ahead of the June 23rd Brexit vote. It's so much easier to take your money off the table while things are still going up – you get much better prices from all the suckers who are still buying (they are called "bagholders" by market professionals).
The last time we did such a big cash out was last August and our timing was perfect then as we cashed out and went short and, by September, as the markets collapsed, our paired Long and Short-Term Portfolios hit $1M for the first time (up 66%) and we went shopping with our CASH!!! in late September (see "Back to Cash, Back to Basics – Buying Stocks for a Discount") caught the rally into January, cashed out again, went shopping in February and now we're out again at $1.5M – up another 50%, or 80% of our starting basis, in just over 6 months so of course we should be cashing in our gains, right?
Maybe our timing is wrong this time but that's why that indicator at the top of the page says "EXTREME GREED" that's where the market is and excuse us if we don't have the stomach to ride it up to 100. When you have profits, you NEED to learn to lock them in and protect them – otherwise, what's the point of making them?
As you can see from the chart on the right, the June 23rd Brexit vote is not the only issue facing the EU as 7 other nations are already demanding changes in the charter and Italy is right on Greece's tail if the ECB doesn't do something about their unpayable debt balances.