Indices staged a comeback & closed @ highs of the day.
S&P 500 @ 1515.60
RSI @ 57.43
CMF @ 0.264
Internals were :
UP volume led by 4.41 to 1 in NYSE & 2.96 to 1 in Nasdaq
Advancing stocks led by 3.05 to 1 in NYSE & 2.65 to 1 in Nasdaq
Net new 52 wk highs were leading by 92 in NYSE & 68 in Nasdaq
VIX Down 6.90% @ 14.17
Oil @ $93.13
Gold @ $1572.80
Canadian $ @ 99.76
Portfolio is BAC,BBRY,YHOO
Stocks which were UP 1% or more included YHOO,
QIHU,AAPL,CSOD,CMG,EXPE,HMC,JCP,SU,
LVS,WYNN,PANW,LNKD,V,CRUS,LRCX,
MU,BRCM,JDSU,CIEN,C,MON,NVDA,
SBUX,MCD,STLD,MS,GS,BJRI,MLNX,
IBN......
Next post by 2 PM Sunday
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hey Saleem,
The pullback this week saw the portfolio drop 0.66%, slightly more than the S&P's 0.28% drop but relatively benign given the beta nature of the portfolio. The biggest gainers were CSOD (+7.0%), PFPT (+5.2%), and PANW (+3.8%), with the biggest losers YNDX (-7.8%), FIO (-7.8%), SONS (-5.2%), SODA (-4.9% from purchase), and WPRT (-4.8%). Here's how the portfolio looks now:
Primary positions (from 8.7%-7.5% of total): PANW SPLK CSOD PRU PFPT FIO
Secondary positions (from 6.2%-5.8% of total): WPRT CF DSPG AXLL SODA
Tertiary positions (from 5.4%-2.9% of total): YNDX SONS AUDC HLF APWC
The most important moves I made this week were to sell AXLL/BAC on Tuesday near highs respecting my weekend plan, and then buying AXLL/CF on Thursday at lows. I also picked up some speculative stocks in SODA and HLF along the way, dumping MLNX which troubled me competitively despite the buyout potential. My note from last week to watch CSOD carefully turned out fine with it being the biggest gainer of the week--apparently it just needed some time to rest. The mistake I have made recently is with FIO--I was paying too much attention to their storytelling, and not giving enough credit to price action or valuation. Although the stock is now at RSI 24.9, I have to be careful I don't watch it fall another 20% slowly over time. I think I will have to pare back/sell on any kind of pop.
This is a huge earnings week for the portfolio with PANW, SPLK, and SONS all reporting Thursday (along with CRM Thursday also!). I have high hopes for all three of them and hope the market tone is positive to receive them well. PANW's large Friday rise was due to FIRE's nice earnings the prior day, so much of the potential could be "baked in". I am interested to see if SPLK is still finding a growing niche despite some competition from those big players like SAP/IBM/ORCL. Finally, SONS is a play on increased telecom spending and was supposedly taking share from APKT before they got bought out. This could be an explosive one if that proves correct.
On a broader front, worries about consumer spending, a housing pause, the Chinese economy, and sequestration all weighed on investors' minds this week and may continue to for a while still, although this may be the backdrop for a wall of worry to continue climbing. As long as some surprise Italian election outcome doesn't really throw a wrench in the European story, I think we can continue to see improving economies and stocks, but definitely with bumps along the way. The latest investor confidence readings have taken a leg down and the overbought conditions have been worked off, so there is a good base to move higher barring a serious negative surprise.
Overall, I remain constructive on the direction of the world economy and stocks. If you find some good stocks/stories, stick with them. Always prune the losers before they erode your returns in this bull market and you look back regretfully--I continue to learn this lesson! This week I am especially interested in many key earnings reports in my portfolio.
Hope all is well! :)
Stocktrader
Hi Stocktrader,
Good portfolio analysis.
We all keep learning the same lesson which is not hard to understand given erratic TAPE action....similar chart either goes UP or BREAKS down....
I am looking forward to this week for some positive action.
Saleem
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