RSI closes above 90% (cash, invested, market, visa)

[Richard818]

You technicians and historians know the significance. Steep declines in 5 of 6 instances after ultimate top reached including 1929 and 1987. Open for discussion.

[kwong7]

I took profits today partly because of this, but mostly because I believe a lot of my gains have been boosted over the last few weeks and the risk to the downside is greater than the upside. I trimmed the following:

FB 50%
SBUX 50%
SODA 50%
AAPL 25%
KMX 50%
JNJ 25%

I'm currently 25% in cash after adding to my Citi and Visa positions. I'm up about 28% this year and don't mind missing a few percentage points. I feel like I have more to lose than to gain by staying in the market. Secondly, I don't think the tax plan will pass in 2017 and that might be a short-term negative for the market (even though I think not passing it will be better for the country). This might lead to a bipartisan tax plan in 2018 which will hopefully will be best for the country and the economy. The market should correct before that happens; if that happens. I'd say the current plan (which hasn't been seen yet) has a 15% chance of passing before 2018 based on the attitudes of public polling and the fact that Congress cannot agree on much (not necessarily a bad thing).

[Cranston]

Long and leveraged, 100% invested in SSO (2x SPX).

2018 is going to be a great year too. This baby has yuge momentum.

[txgolfer130]

I don't like pinning trades to RSI over the 75% level, due to the inaccuracy or decay in relative sensitivity to reversals. That being said, WOW! Working on VIX trades as of this morning now that my AMZN, FB & TSLA trades have all worked out. Really hoping the trend continues, about to get into the great area to make some really good plays.

[rruff]

Originally Posted by Richard818

You technicians and historians know the significance. Steep declines in 5 of 6 instances after ultimate top reached including 1929 and 1987. Open for discussion.

https://www.investing.com/indices/us-spx-500-technical

Strong buy.