I sold out of PLCM, raising my cash position to 20%. Like I said earlier, I am a seller into the Fed meeting. Depending on the amount of carnage or gains absorbed ahead of the Fed will determine my level of selling. I was tempted to sell more, but opted for a methodical approach instead.
Also, I am eying to buy FSLR, due to strength in the solar sector–an Obama (go Solyndra!) 2nd term play, if you will.
Members of The PPT know we were flagged OVERBOUGHT on thursday and friday. Thus far, those signals have proven accurate. Generally speaking, OB signals preempt a 1-3% sell-off in the SPY, over the next 10 days. With today’s 0.6% drop, I am looking for another 2% down to reallocate funds.
Trust me, I know this sounds chaotic, bullish one minute and bearish the next. Right now I’m sort of neutral. I embody the stock market, in all of its forms. The reason why I am able to crush my peers and indices, year after year, is due to my malleability with regards to opinion. My recent forays into the market have proven to be profitable, yet not pretty and more of a grind than anything else. One percent here, two percent there, and I’m +27% for the year.
Early going I had some macro-thesis plays in WNR, ALJ, YELP and others. But I’ve moved past them, as prices have appreciated beyond reason, in exchange for oversold momentum plays. Cognizant of the nature of double edged swords, I remain steadfast in nothing but preservation of my gains and will literally kill a roomful of humans to make sure that I accomplish stated goals.