Last week I got a little spooked and did a lot of selling, first a couple of mutual funds (I don’t like mutual funds due to them being so illiquid), then most of the stock and ETF’s that I hold for a trade.
Fortunately I did not sell any of my Dividend Payers as the market rallied nicely right after I sold.
I did lock in some nice profits and sold a few at a loss that needed to be sold. So at this point I have a mostly clean slate and ready to re-enter.
I’m not sure when or how to re-enter but in the future will adhere better to THE RULES for selling and let this guide me rather than emotion.
What spooked me? Things have just been looking too positive and we have not had the correction that I had been expecting. This could still occur, but hopefully it won’t last long as this market has repeatedly proved to be very resilient.
What caused the rally?... an excellent jobs report of 165,000 new jobs and the unemployment rate dropping to 7.5%
What did I see in my weekend review?
The 10-yr Treasury yield is up to 1.75
IBD (Investor Business Daily): Confirmed Up Trend
Copernicus Systems: Long
Moneys Flows: All still positive but 2 out of 3 down in cash flow
Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)
RGR Sold for 2.65% loss, will consider this as Dividend Payer in the future
GILD Sold for a 21.41% gain, will likely revisit soon
ETF’s for a trade are:
INTC Sold for a 9.42% gain
CSCO Sold for a 4.2% loss
GLD Sold for a 6.5% loss…I don’t like insurance, cash is just fine
What will I do?
I really benefited from the Biotech gains and these still seem like a good place to be, so I hope to reacquired the ETF IBB
I will be watching the biotech stocks GILD, AMGN and BIIB…hmm perhaps another trio.
Additional ETF’s will once again be Japan’s EWJ, and now India EPI and it's time for some good old SPY
For stocks I like: SANM and FLT in adding to the biotech stocks
I hope you have a great week