Generally I prefer to add to positions as they pullback to their 50 day moving average, which for Blue Coat Systems is down near $71. But for very strong companies, sometimes in an uptrend they only pullback to their 20 day moving average, which is where Blue Coat is right now (just below $80). So I am adding more here with an eye to try to add more if it drops.
Blue Coat Systems is now the largest long position at 4.25%. With my general nervousness about the market as a whole (can the market go up for 2 months straight?), I am going to hold off adding more, and hoping the stock falters down to its 50 day moving average so I can load the boat.
As an aside, I also added a bit to my smaller Riverbed Technology (RVBD) position as I sold most of it higher in the mid $40s, as I am favoring Blue Coat due to valuation but that stock is sucking wind as well back down below $40, so I will be working on position building here, with hopes to add more around $37.
If you are a new reader please click on the Blue Coat Systems label at the bottom of this post to see earlier thoughts on this dynamic company.
Long Blue Coat Systems and Riverbed Technologies in fund; long Blue Coat Systems in personal account.
