It is really juicy out there.
Other than small cap blitzkrieg runs and the giddiness on the streams, things are pretty normal. Momentum is in charge and high yield checking accounts that yield .15 percent are creating this need to chase risk for the moment.
I sold some $AAPL this morning, not because it’s overvalued – because it’s run 100 startight points since the world was supposed to end and that is what I do. It’s obvious that Facebook will get public, but it’s been public for 18 months so all those people saying the IPO will be the top are missing the point. I don’t see the same signs of a top that I did in October that made me post ‘This is What A Bottom Looks Like’. We have Mobile, Oil, Internet, Semiconductors and Retail stocks ripping. We have defensive stocks sloppy. This is pretty textbook behavior for a strong rally. Book some profits, redeploy a little in some fresh breakouts in fast growing sectors or sit tight and enjoy the gains knowing that this won’t continue and have a plan to exit.
You work hard to stay in the business so that you can sit back and enjoy these runs and think less.
Disclosure – Long $RAX $INTU $SIVB $VRSN $AMZN $AAPL $NUAN