It doesn’t matter what I think is going to happen. All that matters is what’s in front of my face. What I see is red ink, stocks bleeding out because of the specter of a debt ceiling breach. I’d like to hold the stocks in my portfolio because I believe they’re cheap. But they’re just stocks, frankly, and can easily be replaced.
I sold my entire MHO and FLTX positions, locking in 5 and 11% losses, respectively. I didn’t sell them because I felt they were going to trade lower. I sold them because they are lower. When “non-core” stocks breach 5 and 10% levels for me, I either double down or sell them. Due to the onerous tone of the market, I decided to sell them and raise 30% cash. I trimmed a few other things too, little stakes, here and there–bringing my current cash position to about 33%.
Naturally, I am on the prowl for fresh ideas, looking to make back the losses that I just locked in. But I am going to take my time, behave like a Congressman, without all of the traditional degeneracy that affixes itself to that position.
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long IMMR and BALT into the fray….
IMMR holding up rather well today, looks like it’s ready for another leg up soon.
a strong earnings announcement will break the chains. That would be 2x consecutive huge quarters and tough to ignore, even with a big fish selling.
think FLTX might become interesting around earnings.
I hated selling it because of Seeking Alpha. But, at the end of the day, that’s not a very wise investment philosophy. It was a dog.
I play in the ocean… it feels like a storm is coming
The ocean belongs to me and my horn of pearle.
How do you handle your core positions at a 5-10% loss?
I buy more.
BALT is stepping forward like a soldier.