Maybe it IS 2010 all over again....

What happened this time around?

Well, S&Ps exploded higher off the March 2020 lows, and since last year looks like it has been completing a major top. Or so everyone seems to think....

But what if it doesn't?

What if this is another failed breakdown, just like in 2010?

If the S&P500 is above 4100, that's exactly the bet we're making.

We cannot be short equities if S&Ps are above 4100.

That's the bottom line.

So I think it comes down to time horizon. It comes down to your personal objectives. What are your risk parameters?

These are different for everyone.

Even internally, the way I would approach this is going to be different than how Sean does, or Strazza or Willie.

So although internally we would all agree on the circumstances I mentioned above, the execution looks very different between us all.

Sean has been selling volatility. Strazza has been long out of the money calls on the growthy stuff. Willie is simply waiting for more stocks making new highs than stocks making new lows.

Our time horizons and objectives are very different. Even being on the same team.

Me?

I'm in. I like this setup.

If the S&P500 is above 4100 we want to be spending our time looking for stocks to buy, not spending time looking for stocks to sell.

That's how I see it.

Let me know what you think?

Do I have it wrong? Tell me why!

JC