Sunday, May 5, 2013

Clean Slate


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:
IWM  Sold for a .9% loss
EFA  Sold for a 4.1% gain
IBB   Sold for a 9.18% gain, will revisit soon
EWJ Sold for an 8.35% gain

Old Tech Trio:
INTC    Sold for a 9.42% gain
CSCO  Sold for a 4.2% loss

Insurance
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

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