Market doldrums? & Portfolio Closeout

More consolidation ahead?
The general chart pattern of the current rally is that of an upward movement for a couple of days followed by a longer period of consolidation. We had a nice move last week after what seemed an interminable period of consolidation (but which really was only eight days) and now it looks like we’re back in the consolidation phase.

How long we’ll stay here is anyone’s guess and as I mentioned in the previous blog, there’s not a lot of market-moving news left to fuel this rally. Now would be a good time to buy some put protection, just in case. Options on the index tracking stocks such as the QQQQ, SPY, and DIA are cheap and liquid.

Today’s portfolio close-out
The 10/22 portfolio was closed out for a decent 4.5% gain. This IT-heavy portfolio’s return was right in line with the 4.8% return on the Information Technology ETF, the VGT, during the same period.

Capture

The 10/25 portfolio will be exited Monday. Only five portfolios remain.

[See 4/21/10 blog for further details on how these portfolios were constructed.]

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