April 19, 2021, 12:39 pm EDT
Pullback time arrives today after an extended rally since early March. All major indexes advanced about 10-12% in the past 5-6 weeks which were very strong but unusual. Please notice bitcoins were up significantly also. Not-so-great Coinbase (coin) IPO also indicated potential top.
Thus, it is very important to stay alert and prepare for any sharp sell-off. The mild pullback may not be a problem. But if cryptocurrency, superhot technology TSLA, AAPL, AMZN. FB, MSFT, Gamestop mania, marijuana topis are no longer attractive topics, it would be a sign for the final top. This is the reason defensive sectors are up in the last weeks in consumer staples, REIT, utility, and healthcare. Please check out our portfolio holdings in 52 weeks high today like TSCO, PSA, and KHC for reference.
In summary, it would be better to stay defensive and raise up cash levels during pullback time and keep watching the development of the stock markets.