Trade Alert: Some Sells And Some Buys
We continued cutting down a number of our longs this morning but as the market has tanked so hard intraday here, we are also adding to some of our favorite longs now.
As you all know, I’ve been increasingly leaning more bearish lately and also, we’ve been busy lately cleaning up the portfolio, as noted in recent weeks. I like to have 20 or less long positions in order to give ourselves more potential upside than you get if you diversify too much. We continued cutting down a number of our longs this morning but as the market has tanked so hard intraday here, we are also adding to some of our favorite longs now.
First, the buys since the market has gotten so ugly as I am about to send this note out. We added to the following names as the market has tanked here in the last hour, in alphabetical order: $AAPL, $DIS, $HOOD, $RKLB, $ROK, $TCEHY. We have limit orders to continue to scale into each of these names if they drop another 1-2% today.
Now, for the sells.
I have a rule that I sell a stock if/when there are questions about their financials and Autodesk recently filed with the SEC that they have started an internal investigation into some funny numbers inside the firm. I’ve made the hard decision to sell $ADSK because of that. I still very much like this stock and we might have to pay a higher price in a few weeks when they announce the findings of their investigation — if the investigation doesn’t find any bad stuff. If the company ends up having to restate or guide lower for the future because of the findings of their investigation, the stock could obviously sell off. We’ll revisit this name after we get more info.
Meanwhile, forgive us for the quick flip on Lululemon, but I just chose to take a small loss on this trade here. We also sold our Adobe today too, just again to reduce the number of positions. I’d like to buy Adobe as a forever position someday if the valuation will get down to a more attractive level.
We hate to sell these last two names too, but again, we want to clean up the portfolio and have fewer positions — we sold the $CRWD and the $STM positions today too.
We started doing these sells about an hour ago and I started writing this note at about the same time. As the hour has gone one, the markets have tanked more than 2% or more intraday. To be clear, we were going to sell these positions today anyway.
