I am going into tomorrow (5/29/13) the lightest net long I have been in a while. A few quick points:

1) I am NOT turning into a bear. I am simply not finding a large number of strong risk/reward entries right now. I have a nice cushion on my remaining positions and will continue to manage them based on my investment philosophy.

2) I locked in some strong profits over the past few days, as I am having my best trading month since 10/2010. Some people would say “keep pressing,” but as they say “pigs get slaughtered.” I don’t like being too greedy and I certainly don’t like giving anything back.

3) I would certainly NOT fight the Fed and all the liquidity out there. I am not encouraging anyone to short because that has been a torturous experience for most market participants.

4) Keep in mind that I am a swing trader and I am allowed to change my mind. I consider myself VERY nimble and I could be aggressively long or short by 10AM tomorrow. I pride myself on being able to make quick decisions and adapt to the market conditions in real-time.

So, the big question: Is lightening up the correct move right now? FOR ME, it’s a good time to take some off the table based on my trading style. Is it the right time for you? You need to make that decision based on your strategy and your overall goals. As always, DO NOT follow anyone’s advice blindly (including mine) and always know your timeframe. Good luck trading!

Follow me on Twitter @jfahmy
Follow me on StockTwits @jfahmy