We've seen the S&P 500 move back above 3,000 for the first time since late February. It's back above its 200-day moving average, too.
For the bulls, this is good news: The technical breakthrough creates another opportunity for stocks to move higher in the short term.
So, by all means, enjoy the long-side profits. Just don't turn your back on the market. Don't rush in unprotected. This market still demands respect from investors who have even bigger portfolios to defend now; it could turn vicious in a heartbeat.
Valuations have rocketed higher, but the economic risks of the coronavirus crisis remain constant; high unemployment and extreme economic uncertainty are all but certain to persist through the summer.
At the same time, the "money migration" that was sparked by that same technical breakout above 3,000 is now lifting the financials, travel, and, importantly, small-cap stocks, which is also a signal that we'll likely waltz down the primrose path into an overextended, "overbought" situation in the market.
That means hedging is more important than ever. Now, I've talked before about "paying" a little for portfolio insurance every month; that's easy to do.
But there's another hedging move that's even easier - and it won't cost you a dime...