One day this week I took advantage of ALGN and ALXN being up a little and said adios. I was reminded that if I would not buy these….why should own them? Selling at an overall loss is painful, but it felt better after it was done and it was long overdue.
I will also sell FRAN, but will give it until approximately December 1 to see if it can do a little pre-Christmas recovery dance.
That same day I decided to sell EWG (Germany) and EWW (Mexico) with a plan to buy EWH (Hong Kong) which is much stronger. After doing the selling I decided to wait and see what January brings before taking a position in EWH.
I continued selling with some end of the year clean-up of dividend payers by selling KO (Coke) and MCD (McDonalds). These have been great stocks, but I am concerned about these businesses going into the future with the focus on being healthy. Likely both can evolve if need be, but there are plenty of other companies on my growing watch list to consider at year end. This year end’s fiscal cliff is just too ominous to wait for selling later.
I had a nice profit in an AAPL trade earlier in the year in a cash account and realized I could offset some of this gain by taking a loss by selling CHD in the same cash account. I can repurchase CHD (which I still want to own) after 30 days has passed and avoid the wash sell window.
This is likely a great time to buy more AAPL, but once again I decided to wait until January and see the result of the impending fiscal cliff. In the mean time the AAPL I purchased a few weeks ago deserves to be in the somewhat cleaned up doghouse.
We did breach S&P 500 Fibonacci number of 1396. This had been cited by a technician as a signal of a greater drop going forward. The selling I did this week is making me more comfortable., but I know at some point this market will take off...perhaps with a roar, so I will be watching.
What did I see in my weekend review?
The 10-yr Treasury yield is at 1.61 Down?
IBD (Investor Business Daily) is at: Market In Correction
Copernicus Systems: is mixed, but global ETF's such as EWH look very strong. I aslo see EWC, FXI, EEM and EFA rising in the rankings...perhaps the global ETF's will soon be a good place to invest...perhaps they are now. Collectively they don't have the fiscal cliff, but they could be affected by ours.
Moneys Flows is down in 2 out of 3 portfolios
Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)
ETF’s for a trade are:
GLD 1.82% has turned around once again; somewhat ominous, but predicable
Doghouse:FRAN -25.60% will stick with the earlier plan and sell it on or before Dec 1
What will I do?
Waiting and watching. I will also be looking to see if something else that needs to be sold.
I hope you have a great week.