S&P 500 has moved UP 13.94% in 8 trading days, what next ?

Only 8 trading days ago, we were @ 1074.77 in S&P 500......gloom was thick & every pundit had 10 reasons why we are going to take 666 lows......

Here we are 8 trading days later & we are UP 149.81 points or 13.94%.....

BUT, now everyone expects this market to keep going UP...all the worries about US economy & Europe is all but forgotten......

I am sure everyone is very happy about their gains in this run.....BUT, as they say you only have profit  after you have sold.......

It is important, to keep an eye on technicals when we are going UP also....currently RSI is @ 59.95 this MAY have more room to go UP BUT 65+ area is "danger zone"

S&P 500 MAY also go UP to 1258 as first resistance which is another gain of  33.42 points or 2.73%....second major resistance is 1276, which is another 51.42 points or 4.2%.......

I hope you have a strategy in place to lock these "incredible gains".......

I am much more OPTIMISTIC when gains are slow & orderly...BUT this RUNUP is extremely fast which IS making me NERVOUS.....

As you have seen, that i reduced my exposure by more than half on Friday. I still have 62% exposure which will be reduced further IF we have gains on Monday to Wednesday.........

My portfolio is mostly defensive & is in beaten down / & out stocks...this gives me higher comfort level.

Here is my $ weighting :

RIMM 49.75%

JCP 18.70%

MS 15.79%

LULU 15.76%

RIMM has its developers meeting starting on Tuesday, there is expectations that RIMM will give a "sneak preview" of its QNX based phones. Also they will announce changes to their
playbook like capability of email.......hopefully stock price of RIMM will show some upward trajectory this week.

AAPL reports on Tuesday, i am expecting "higher than consensus guidance" iPhone 4S sales are getting a huge lift based on emotions about Steve Jobs departure.

Earnings are expected to be better than consensus in coming weeks, BUT we have gone too far in a hurry which MAY temper upward move.

This is also an Option Expiry week for monthly / weekly.....which brings more uncertainty from Wed forward.....

Good luck with your OWN strategy & comfort level.

BLOG does NOT give buy or sell.

Saleem