How I Pivot: Sell into Strength

Based on the tape...

Got questions about how I pivot into the new model.

Well, I try to sell into strength (+ 3 - 5% on my stocks from here would be nice ;-)) and wait for weak days on TLT to scale in.

Why —> Because the tape tells me so. Some room for a bounce for small caps tactically (which I saw better after the following tape analysis):

Also, it is not that I get short here or go into 100% Cash, its 66.66% long lower volatility / quality small caps and 33.34% TLT.

Why do I not get into high beta big caps? That would have been a great trade in late September, but I would chase here if I would try that one.

Yes, I might miss the last part of a rally, but that is not the point. The point is to wait for the next big pitch (China?) and then to progressively expand into it. Something comparable to the September lows.

On September lows we had: 42Macro calling for better economic data, high beta monster relative strength into a market DD (on a system level and on individual stocks like TSLA, CAR, CANSLIM Trader on Twitter found a ton of leaders that hold up), monster relative strength of my small cap systems (including Energy!).

If we get stuff like that again, I will pivot from my pivot ;-). Until then I play it save (or better: saver!).

Please do your own DD, I could be wrong here!

Happy trading!