The chart below makes me uncomfortable, so I am taking index profits. I'm crazy about most of my equity positions, but as nasty as the past seven weeks have been, I am in a cautious and defensive frame of mind. The prospect that yesterday's romp was just a retracement back to a large breakout patten is too real, and the price action over the past few months has been constructive for the bulls. We haven't broken any serious levels of support. Thus, I'm going to play it safe on those index puts.
I've closed S&P and FXI for now, and I've got my finger on the button for RUT and NDX.
