There are two times in a bull market market cycle that price can accelerate quickly. First, the beginning of a new bull market (price accelerates out of a weekly intermediate cycle), and secondly, the late stage melt-up phase before the bubble pops.
We are now in the melt-up phase in equities, clearly prices are going parabolic. This is the time when more uneducated investors start pumping incredible amounts of money into the stock market.
Prices will increase until it doesn't. Here's what I'm doing.
Last week, I took 50% of profits in the equities. Yesterday morning, I decided to go back in to continue the ride. Good thing, the market rallied good.
I bought DIA, QQQ, and SPY. After doing research of previous bubbles, the parabolic phase can continue for several more months.
My strategy is clear, ride it up and use a trailing stop. Stop-loss at the daily 10 MA. I might get stopped next week , or in the next few months.
Let's see how much of this run we can get.
I will not ever buy and hold in this market! Too much downside risk.
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Note: I am not a financial advisor in any shape or form. The contents in any of my posts are merely opinion alone. I'm simply stating opinions