10/28/11 After 'Rocktober'

The decision to move to cash was largely based on instinct (and to the best of my knowledge, not on emotion).

I recall reading the Hulbert post around lunchtime with detached interest, then moved on to another task. Unable to shake a sixth sense impulse to return to the article, I reread it. An unsolicited decision to sell descended like a flying carpet. First it was the individual stocks- AA/CSCO/CSTR/GE/INTC/WFC, all dispatched quickly with little reflection.

Then I moved on to the retirement accounts. The ST redemption fees, as it happens, only applies to amounts contributed within the past 29 days (longer in the case of The Japan Fund). Thus my 'fees' for moving FSELX/FSCGX/FSPTX/FSRBX/FJPNX into the Fidelity Select Money Market fund totaled 2 figures- very acceptable.

Now that I've had time to reflect, my thoughts on the sixth sense:

(a) The entire portfolio closed today +20% higher compared to its ending balance on October 3. That's only 19 trading days! From a purely common sense POV, I have little regret moving money off the table (of course, as BB points out, I needn't have taken it all off the table).

(b) Driving to work this morning, I felt a little uneasy listening to KCBS market commentators throwing out lines like (i) 'The largest monthly gain since October 1974' and (ii) 'October is usually known for sell offs- this year it's been more like Rocktober!'

(c) Hulbert's column sealed the deal- it arrived as confirmation that exuberance was back. As an avowed avoider of crowds, I almost had to slip out with the delivery truck.