Sentiment Has Reached An Extreme Level

Sentiment as measured by the equities only put/call ratio has reached an extreme.  This doesn't mean that a top will follow immediately.  A decline could start tomorrow or in 2 to 4 weeks.  However, prudence dictates that it's time to take some profits.  I would be willing to leave some long positions on if they are working, but it's time to lighten up.  The Qs breached the July 2011 high, closing above that level by only 3 cents with a doji candle.

I will be selling half my position in the Qs and raising the stop on the remainder to this week's low at 58.48.  I have sold two swing stock positions that reached target zones, and I will be selling two more tomorrow.  I will be tightening stops on the remaining positions, and not taking any new positions until we see a healthy correction.  Once a decline is underway, swing short positions may be taken if setups are available.