In the next day or two I’m going to post some charts (SPX and DJX) showing how the US stock market is in the final stages of its massive uptrend that began all the way back in March of 2009. It has one more level which would be the absolute maximum it could go to but I seriously doubt it makes it up there. If it does then I would use every spare dollar I had to short the market at that point but it still has a ways to go to get there.
If I had all long positions and had not taken a decent amount of profit over the past couple of years then I would start scaling out now because even where the markets are now it could start the retracement today, that is how long and how far the uptrend has gone. If I was near retirement and had a lot of exposure to stocks then I would definitely start scaling out and taking my profit to the bank.
I’m not sure when it is going to happen but it is coming and will happen sooner rather than later. It needs to happen to complete the cycle. It won’t be nearly as bad as the 2008 crash, not even close, but you will have CNBC and the rest of them hype it up as the next great depression.
