The market action is mixed on Wednesday and the indexes are sitting in some developing trading ranges. I do not see any strong reason to be aggressively long or short right now. What is most important is to be mentally prepared to move quickly as the market develops from here. It makes it easy to be highly reactive if you have a high level of cash.
My primary goal is to keep my accounts as close to highs as possible. This allows for compounding and avoids the very unproductive activity of recovering losses. My accounts are positive for the year, but not back to the February highs. January and February were good months and I gave back too much of those gains. Recovering to highs is now my main focus. I am going to make sure not to let anything slip should the market put in another leg to the downside.
As of Wednesday morning, I was holding roughly 80% cash and about 28 long positions. The long positions are all quite small right now, as they have been reduced in recent weeks into strength. The biggest positions I have currently are InflaRX (IFRX) , Cassava Sciences (SAVA) , Aurinia (AUPH) , Schrodinger (SDGR) , Slack (WORK) , Aimmune (AIMT) , Trillium (TRIL) , Sea (SE) , and Peronalis (PSNL) . They will change quickly.
I've written this quite often lately, but it is worth repeating: I see no reason to put much money into longer-term positions right now. I'm not interested in trying to buy the lows. I'm much more interested in buying sustained upside strength. I did not see the technical conditions in place to suggest that a lasting uptrend is about to start.
The best way to make money in bear markets is to catch strong counter-trend bounces. We have had an exceptionally strong one but now we have to wait for what comes next.