Yearly resistance strikes! Yesterday, I "guessed" that markets would break out up. This was wrong! But key point - I did not adjust positioning. This means portfolio still net 70% long, although the 1 FXI short trade lost some gains today. 20% hedged (IWM) means the portfolio has avoided some of the pain on the drop compared to market weight.

Multiple USA main indexes were rejected from major pivot resistance, with XIV also dropping from a key level. So it is a valid question to reduce long exposure further. Tough call, as things could easily rebound soon enough and maybe most of the damage already done.

I don't know if this is right but thinking semi-conductors have had a huge run and might be subject to more tax related selling pressure in the new year. If we take the gain on that remaining position that will leave the portfolio with a bit more cash. This will help if things drop further, but could harm if the market rebounds and semi's jump yet again. Based on weekly and monthly charts I think this is the right move to take the gain.

SPY, INDU cash, SMH, XIV below.

PS: SPY YP currently 2212 and YR1 2414. 1HP 2200, Q1P 2203.