AAPL – 3%
STX – 6%
WDC – 6%
HLF – 3%
SCSS – 4%
SXCI – 4%
QCOM – 6%
BLV – 3%
TLT – 3%
RWM – 3%
FFIV – 3%
F – 6%
APA – 6%
Sold last week –
CLR, WLL, ALLT, GNC, LNKD (I know!)
Reasons for the sale –
- Market broke 2 critical supports last week – 4 month old trendline and 50 DMA. Let’s wait till the market moves above 50 MA and makes new high, convincingly (no double tops please:().
- The earnings season is underway. It’s better to reduce the high fliers by 50% to avoid losing profits.
- Quite a few breakouts in last couple of weeks have stalled, failed and occurred at below average volume – such as SWI, WDC, LVS, etc.
- Old adage – Sell in summer and go somewhere ( dont ask me where!.)
Lastly I added small positions of defensive stocks as mentioned earlier – BLV, TLT and RWM.
Week ahead –
- Stay defensive, preserve capital below the prior trading range. Above the range, expect a move back to and above the prior highs.
- Do not trade intraday, but rather focus on setups and keep an eye on earnings
- U.S. week ahead (Reuters)
- Next week’s trading radar (Minyanville)
Good Reads –
- Bull markets don’t improve with age (Mark Hulbert)
- 4-year cycle approaching crest? (Carl Swenlin)
- A bear favorite chart (Doug Kass)
- Volume hits 4-year low (CNBC)