Too good to be true? More gains for the stock market. It feels unstoppable.

The PMO index is at its max. In a normal cycle, this is usually when I start thinking about lightening up a bit and raising some cash. I’m starting to take partial profits on anything that looks extended, and I am selling anything that has been performing poorly.

I sold my Copper Miners. Talk about extended. And now copper may be headed lower for a well deserved break.

The level of new 52-week lows is not providing any sign that there is trouble brewing for stocks. It seems that as though the only thing that there is to worry about is that it is all just too good to be true.

We’ll have a day soon in which the market will go down… maybe tomorrow. Will I be fearful and think, “why didn’t I sell more yesterday?”. Or will I be greedy and think, “it’s a price dip, buy!”.We’ll see.

Outlook Summary:

I worry that the gains in the stock market have been too much and too easy. I am gradually moving from offense to defense in my accounts. 

The long-term outlook is positive.
The medium-term trend is up.
The short-term trend is up.