Late Friday, as the market got that short squeezy feel... I took some profits in some of my top performing 2019 names... Nvidia (NVDA) - Get Free Report , Micron (MU) - Get Free Report , Schlumberger (SLB) - Get Free Report .
More cash? Yes, more cash. I remain at very high levels. Have I given up on these names? No. (Well, in the case of Micron, kind of yes... but when you recover a fumble on the two yard line you don't ask why.)
I believe that U.S. equity markets are extremely vulnerable right now. The S&P 500, having now broken out of the October through December downward sloping Pitchfork will look to base somewhere. I now see all four major indices plus the Dow Transports standing above the 50 day SMA, but well below the 200 day SMA. A lot of room in either direction.
How does one maintain exposure to the upside? Invest as if there will be several positive headlines.
How to mitigate volatility without adding expense? Expose a smaller percentage of available funds. Take gift profits. Rebuild those positions at targeted discounts if the corporate story remains intact.
Opportunity presents. It always does.
(An earlier version of this column appeared at 8:08 a.m. ET on Real Money, our premium site for active traders. Click here to get great columns like this from Stephen "Sarge" Guilfoyle, Jim Cramer and other experts throughout the market day.)
At the time of publication, Stephen Guilfoyle was Long NVDA, MU equity, Short NVDA puts.