May Musings

The daily chart for the Dow (and basically the market in general) is looking fairly positive for tomorrow. I believe the Dow will close up from Friday's close.

However, the weekly chart is quite the opposite. Where the daily stochastic is quite low, the weekly is quite high and the other indicators are at overbought levels. So I will be looking to take some profits tomorrow as I continue to move more into cash. I'm less optimistic about May, or at least the next week than I was a week ago (see my last post). If these expectations hold out, I will consider buying some SDS tomorrow. I like this and its Nasdaq cousin the QID, since they let me short the market with a long position.

Monthly performance update: I am now 41.3% in cash, my highest level of the year. I finished April up 2.28% for the month, putting me up 12.1% year to date, which compares favorably to the Dow's YTD performance of +5.6%.