Sunday, May 6, 2012

The Market Turns Again, Time for a Little Selling

Last week the IBD outlook sank; first to "Uptrend Under Pressure” and now to “Market in Correction”. 

Well that is what markets do; they rise, they fall and yet they gain over time. For the value investor and many astute traders Thursday and Friday was just a buying opportunity. For the momentum investors it is just time to watch and wait, see where this goes and what the trend truly is

This last week I did buy EBAY and XLY but did not pick-up DIS and PFE as planned and will not make further buys now until the direction is clear.

So what did I see in my weekend review?

The 10-yr Treasury yield is now at 1.88%, lowest in some time…hmm

IBD (Investor Business Daily) is now Market in Correction as noted earlier

Copernicus Systems: rotation seen with Global now looking better than US. The Money Flows are now down in 2/3 portfolios and the other is very flat


Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)

RGR  +7.27%, was pulled down a little, but my optimism (hope) remains strong  

PCLN +25.65%, now only (1) in the bank and I have this at a -4.35% using the box theory…will let the theory guide from here.

EBAY -4.79%, not off to a good start

IBD 50 Basket Holdings Are:

LQDT +16.61% (based on two buys) a nice pop and  just what I needed from one of these. Since it has moved to number 1 at IBD I could continue to the ride this, but it has made a gain above 15% , so selling is fine too and it is never wrong to take a little profit.

GNC -5.77% (based on two buys) I wish I had passed on this one based on my thoughts of what I observed in their stores (not much)...since I would not but it now, it is clearly time to sell.

SXCI +1.64 % turned around nicely for now

AAPL -8.15% Ouch! too much, this Apple has worm in it, likely will have to go for now.

ALXN -3.95%, this one is a nasty little pill to swallow this week, but I will take the medicine and see what develops.

ETF’s for a trade are:

GLD (3) buys for -3.24%
IBB   (2) buys for +3.41%
EWY -1.64%, recovering a little, but too little too late, adios Korea
XLY -2.09%, this one still has hope

What will I do?

I will sell LQDTAAPL and GNC. I suspect both of the first two will be revisited. 

Also I will sell EWY. After going sideways in the rankings it has dropped this week, so time to go.

I hope you have a great week.

No comments:

Post a Comment