Over the past 2 weeks, I discussed reasons why I reduced my equity exposure. They included: nothing wrong with locking in profits, the recent excessive equity call buying, the upcoming shift in the news cycle, possible end of the month profit taking, and because some of the leaders were too extended from proper buy points. On the flip side, some of the positives in the market include: the Fed is on our side and there’s very little distribution. How I reconcile this is to stay approximately 50% invested. If the market goes higher, hopefully I participate, and if the market goes lower, hopefully the reduced position size can help me stay in my stocks.
The past two days confirms why I like to take profits into strength. While money rotated into some of the beaten-down sectors, many growth stocks got hit over the past two days. In other words, I prefer to sell into strength to not only have cash to put to work into support, but also to keep my positions lighter so I don’t get stopped out. From here, I still remain cautious over the near-term but bullish longer-term. That’s why I always encourage people to know their own timeframe. I just think growth stocks need a little breather over the short-term, and we need to wait patiently for volatility to calm down and for tighter setups to appear.
Topics covered:
1) 0:00 Announcements
2) 1:20 Market Commentary
3) 7:50 Index Review: Nasdaq Composite, S&P 500, Russell 2000
4) 11:45 Stock Review – Leaders: MSFT, AAPL, NFLX, AMZN, NVDA, SGEN, VRTX, DXCM, SHOP, TSLA, NOW, OKTA, VEEV, TEAM, COUP, SDGR, BTAI
5) 19:40 Stock Review – General Ideas: CHGG, DDOG, DOCU, EVER, FSLY, IPHI, KALA, KOD, GH, GOOGL, QRVO, CRUS, ICAD
6) 24:15 Stock Review – Top 5 Buyable Entries: IDXX, KLAC, BBIO, PLMR, Z
7) 26:20 Conclusion/Summary