Before I share my view I have to remind you that I am not a financial advisor and what I write here is just my personal opinion and not an advice to buy, hold or sell any security whether in a retirement account or otherwise.
I see I need to put up a disclaimer, I will as soon as I can.
Having said that, my short answer is NO. Before I provide a long answer I need to disclose that I have sold ALL mutual funds back in May based on the signal of the trend model I am using. See a table here: Current signals
Why is that I would not sell today? Cause it would have been more of an emotional decision than one based on a systematic approach. The whole idea of this blog is to offer a rational approach to managing a retirement account that does not offer too many choices. The approach is to follow weekly trends an manage the risk through an appropriate position size (will talk more on that).
I am taking the question I was asked as an opportunity to illustrate my point that if there is no system in place then we put ourselves in a very difficult position where we worry all the time and try to make decisions based on probabilities. It is still possible but it is not the game most of people like playing.
What an S&P chart shows is that the market is still retracing the plunge from the April high.We talked about that - see this post. It will be difficult for the bulls to drive this market higher being pressured by overhead resistance (see below), yet they managed to break above 1110, and we have to respect the fact.
I am taking the question I was asked as an opportunity to illustrate my point that if there is no system in place then we put ourselves in a very difficult position where we worry all the time and try to make decisions based on probabilities. It is still possible but it is not the game most of people like playing.
What an S&P chart shows is that the market is still retracing the plunge from the April high.We talked about that - see this post. It will be difficult for the bulls to drive this market higher being pressured by overhead resistance (see below), yet they managed to break above 1110, and we have to respect the fact.
This ~1110 area now acts as a support while ~1130 area is a resistance cluster (pointing down 50 day EMA is 1120, 50% retracement is 1130 and 50 day SMA is 1140). One important warning sign I want to mention is declining volume. If S&P breaks down below 1110 I'd get out. Until then I'd stay in selling portions of my position into any rally as we get closer to 1140.
To summarize, trading is a difficult and emotionally demanding game most people do not want to be involved with. I devote my time to this blog with intent to offer a simple (it is actually a bit simplistic) approach to managing retirement money; this approach is about following the trend via utilizing a mechanical system and managing risk through position sizing. This approach is not popular among financial planners and somewhat contrary to what they advice.
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