Market Wrapup - Strategic Edition

I pray no one was caught short today. What a blowup day. Gains were very high but no need to elaborate because RF is a humble man. Today actually was a good day for the market but for the US, it was rather sad. An american icon went bankrupt. A company that made a living for many families and sent children to college is now gone (or will never be the same).

As for the market, the indicators show we are overbought but duh everyone knows that. I think we are going higher, even from these levels. The S&P blew through the 200 day moving average today, which has created new waves of money coming into the market. I can be a bull or a bear but I gotta be honest, I think are rolling higher. In my view, the NASDAQ still ain't expensive compared to historical valuations. NASDAQ 2,000 can more than happen this year, not calling it, but I could see it.

Now for my strategy. Going forward, I will remove small cap trading stocks and constantly replaced them. These small cap runners will account for about 20% of my portfolio. I will keep core, large cap stocks for about 60-70% of the account, and keep the rest cash. No short exposure yet but I have some candidates. The rest, 10-20% will be cash. I look to add international exposure, my top pick being EWZ. Of course, I buy it at $47, sell it at $52 and now it's at $57 - classic RF. I will buy it back soon because emerging markets seem to be hot. Value in the market is difficult to find; however, there are some areas out there. I went to buy PZE today and it shot off like a gun; however, some oil names like COP or CVX are fairly cheap and some tech and more speculative areas like airlines. I will also look for short squeeze plays. Lastly, I will continue to look for technical breakouts.

All in all, I will be taking profits but at the same time, leaving stocks on the table so I won't miss out on anything. I am sticking by the S&P call of 1050+ by labor day and will act accordingly.