Hoping to Add back some Mechel (MTL) near $94

Yesterday I mentioned cutting back my position in Russian iron ore/coal/steel stock Mechel (MTL) after it ran so far so quick. I was a few hours early as I sold at $102 and the stock went up to $106 later in the day (never get the exact top or bottom), but already today we have seen a quick retreat to the mid $95 range in this volatile name. The 20 day moving average is sitting at $94 so I will be hoping to buy back my position (plus a bit more) at that level.

With the market so choppy of late, sometimes we can make some nice quick trades like this - doesn't make a huge difference to performance but if you can do this relatively consistently it adds up, and in a directionless market as we have had for months (range bound), this has worked out pretty well. Again this goes back to a strategy of culling some of the winning positions as they move up - then if they continue upward, at least you have some skin in the game. (sort of like the fertilizers right now which refuse to fall down) And if it pulls back you can buy back (and in fact buy more). When it works it's a good thing but of course sometimes you see a stock just run and run and run upward and you miss out in part on that move. On the flipside, when a stock implodes during earnings (i.e. a Crocs (CROX)), by taking these incremental gains along the way you lock in some profits that cannot be erased by the fickle mood of the market or unforeseen events.

No strategy is perfect but having such a large portfolio allows one a lot more flexibility to let winners run to some degree while at the same time trimming (and then adding lower) along the way. Obviously this strategy works less effectively in a market that moves straight up for months on end.

Long Mechel, Crocs in fund; no personal position