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  • Writer's pictureT. Livingston

Market Needs Time- Why I'm Moving To Cash

On September 3, 2020, I decided to raise cash and drastically reduce my positions. I ended the day with only two positions. Today, September 4, I am now at 100% in cash. This is the first time I have been all in cash in months. I made the decision to move to cash for a variety of reasons.

First, leading stocks have gotten extremely extended and have started to breakdown. These include Tesla, Apple, Nvida, and Zoom. I wrote a blog post about the action of these leaders yesterday.

Second, the indexes have become extremely extended and look like they need time to base and digest the gains from this year. The Nasdaq 100 needs time to reset, and the S & P 500 looks to be forming an engulfing bar on the weekly chart on large volume.

Third, I've had some great gains since April trading stocks such as Tesla, Square, Zoom, AMD, Plug Power, JD, CHWY, and others and want to protect my gains.

Finally, cash brings flexibility. If the market improves, I can always get back in. There's no rule I have to be in cash forever. If set ups appear and the market improves, I can quickly reenter the market. However, my number one priority is to always protect my account. There's no need to always be in the market.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


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