Nothing Wrong With A Little Cashola

Wow what a day.

As hard as it was for me to do, I spent the majority of the day getting smaller. When it feels like it's the hardest thing to do, sometimes it's the right thing to do. Maybe I'm early, and if that's the case, it's OK. I can accept that.

I just want to point out how important it is to watch the Bond market. @harmongreg and I were chatting yesterday about $TLT. I said,

Sure enough, we wake up this morning with a gap down in $TLT and here you go. This is what you get. On Tuesday I put up a post where I mentioned that a breakdown in $TLT would be "extremely positive for stocks". Sure in theory it sounded great at the time, but seeing it play out really is a thing of beauty.

Taking a step back, it appears as though Treasuries are falling off a cliff. Just a guess here, but I think it's inevitable that it gets down near the 200 day moving average around $100. If that's the case, the melt-up in stocks should continue.

I am taking a more conservative approach here. Loaded up on cash and hoping to do some more of that tomorrow - Go into the weekend with some stock positions and plenty of cashola. Then set my self up to do a little shopping next week as individual names set up.

As usual, I will be watching Treasuries to help me out.