Market Reaction
Hi Marty,
Given for seasonality and how market was acting, I liqudated some of my positions.I was not panicking only thought, if further correction is coming maybe best to go cash to redeploy later.
Which meant giving some of the gains back to market, but i assume that is the part of the game.
How normally should be done (profit taking) Even for long term positions. (I live in a country with No Capital gain tax, so prefer to lock the gains even for the long term holdings.)
What do you suggest.
I sold AMD, HWM, took some loss on SOFI, META(will buy back if goes further down, below 700), sold MSTR(small loss)
What is your take? Hopefully will be buying KTOS and HOOD if market gives an opportunity, but I am not sure I did correct choice by selling those positions.
Kind regards
I think you are very wise to liquidate some of your positions!
This current rally is 15 weeks old and made a 45% move from 14,784 to 21457 on The Nasdaq. It is time for a rest. We saw market leaders like NFLX CRWD ZS SPOT faltering a few weeks ago. Recently we saw more leaders selling off. We have also seen extended stocks like CVNA RBLX HOOD GEV COIN make new highs and reverse lower. These are signs the market is going to pull in.
I believe you will find that new buys are going to struggle to work for you, and the environment is going to be much more challenging than it was during that 45% move from April 7 to July 31.
I have been stopped out of most my stocks, and that is my system telling me it is time to be more cautious. Even though I sold out of most of my stocks, I am not seeing many stocks compelling enough to jump in right away. I will allow the markets to settle down and wait for better opportunities.
There will be always be stocks to trade. However, the gains are not likely to be as great, and we will need to take our smaller profits much more quickly. I will address this in the weekend report video.
In regards to Robinhood, that stock ran 242% from $29.66 to $113.44 from April 7 to July 18. It has already been basing for the past two weeks since making that high of $113.44. It needs at least another 3-4 weeks before we can expect that stock to setup once again. I am watching that stock closely.
Regards,
Marty