Unloading

I started to unload my commodity stocks today. The market is getting very frothy. Could the market go up? Yes. A lot, perhaps but the commodity sector has done extremely well in the past 2 years, it is time to start taking profit. I will sell the remainder in chunks into any upcoming rally.

As I free up cash to invest, I will be looking for more defensive plays that pay good dividends or optionable stocks - writing puts or covered calls.

if the past sets patterns that the future follows, then commodities will follow the same cyclical pattern of the past and retreat significantly from the highs they have recently seen. Could this be different with the Chinese boom? they said the same thing about the internet in 2000.

Capital is hard to build up and it can be wiped out in a blink of an eye.
preservation to play another day is the message today. it's easy to make 10% back, it is very difficult to go from 1 to 10x.

Good luck to all investors and remember to stay diversified.