Due to the oversold conditions in the market, combined with The PPT buy signal and constructive market action today, I took 2/3 sized long positions in:
$PPO @ $19.69
$GS @ $141.52
$DVN @ $63.21
$AKAM @ $39.20
$AKS @ $13.98
NOTE: I plan on holding these positions for no more than 2-3 days. They are merely a reflection of my belief that we are deeply oversold, and have momentarily stabilized.
Four of the five positions listed above are either high quality/best in breed firms, and/or their charts have held up relatively well during the downturn. $AKS, however, has been beaten to death and in my view is worth risking some capital on a reversion to mean basis in the short term.
UPDATE: I still have a huge cash position, north of 60%.
Chess- initiated 2 of those positiions this morn ($GS 136.5 and $AKAM 39.5) also some $DIG 27.78. Do you have price targets for gs or akam?
Good question. To be honest, because these are quick flips (for me), I will gauge the health of the broad market rather than get caught up in individual price targets for those two. So, it is more of a macro-style trade, if you will.
Hello Chess, I always follow your thoughts and really appreciate your work. What is your price target for PPO ?
Hey Tom, thanks for reading. No specific price target. I will instead judge the validity of the broad market rally in terms of volume, breadth and volatility. As of now, I plan on selling these longs by early to middle of next week at the latest.
HI Chess,
Love your post! Thanks for contributing, iBC just keeps getting better. Keep up the good work.
Thanks for being a loyal reader, CB.
Gotta say … I liked your NFLX SHORT reco a few posts back much more than these LONG plays ! fwiw
But that’s just me.
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In fact, today might be a good place to either start or add to … a NFLX Short position. imo
Anyway…Godspeed !
I hope it works out for you.
.
I am still very much interested in putting on some shorts in the near future. In fact, despite my huge cash position, if we continue to weaken I will look to them as hedges.
So here I am on vacation and what am I doing? Reading chessNwine one of my favorite blogs. Thank you chess you are much appreciated I learn so much from you. The Fly did good.
Enjoy