I have spent the morning right-sizing, covering (where necessary), and adding new positions. It’s time-consuming, but I try to do this is a logical and methodical manner based on decades of charting experience and my own personal disposition toward risk tolerance.
There is one outlier out of my newly-updated count of 20 positions which is fairly indefensible, however. I have cut its size in half, and through gritted teeth, I am hanging on to this short. Its symbol? EFA, of course!
This fund represents worldwide equities outside of North America. It is, on this very day, at its highest price in the history of the Milky Way galaxy. It’s never been more expensive. Every bull in it is a winner, and every bear a loser. I think you get the picture.
As I look at worldwide markets, however, I cannot help but see this as a huge, short squeeze, doing little more than pushing country after country to points of importance resistance.
Maybe I’m dead wrong. Maybe by Monday I’ll raise the white flag and cover my remaining 50%. For the moment, however, I’m sticking by this one, because in my indefensible opinion………..
