But gains like this also make me nervous.
The DOW broke through 13,000 with a bang, but look at the weekly and monthly charts below. It's not a sell yet, but with the daily chart on the bollinger band, and RSI indicator over 80 on both the weekly and monthly charts, my assessment is that there is a high probability of another significant summer pullback within the next 3 months.
So, time to take profits and feel good about it, and perhaps consider reinvesting in dividend paying stocks and funds that are less impacted by market swings.
Monthly chart with RSI over 80.
Long term sell signals: Monthly chart within bollinger band, Green EMA 5 (150 day) down.
