rascfw:

If we DO get that rally, I think I'm going to try to lighten my foreign positions a little.  Not buying more just yet; I want to see if the support level holds.

We're all watching our markets slide but, since we're in the US, I assumed that you meant our domestic markets' support levels. I don't understand... which market(s) are you focused on? You finish with your comment about selling into a rally --but selling your foreign positions. Can you please clarify?  Are you referring to domestic or international markets? Or all of them? If you're selling your foreign into a relief rally, are you also selling your domestic equities, too?

I figured 12,500 DOW to be a spot to begin buying.  The foreign funds that I track had dropped the most, and I began buying.  The problem, as it turned out, was that I began buying too soon, and had pretty much filled my foreign allocation by 12,000 DOW.  We are, of course, now approaching 11,000 DOW and will eventually get there (I think), and foreign continues to sink like a stone.  I can't get out of some of my foreign positions without redemption consequences, but there is a portion that I can sell.  Since I'm betting on continuing drops, it seems to me that selling on a rally and buying later at a (presumeably) lower price would be wise.

I sold most of my domestic funds at DOW 13,000 in May (except FAIRX which I unfortunately held on to), and my recent purchases fall under the same redemption problem as foreign.  I did sell FAIRX during a recent (small) rally, however.  I'm a shade over 50% cash at this point, with another 25% in balanced funds, so I'm not in terrible shape, just temporarily overweight in foreign.