It's a traders market - not a buy and hold market. I mentioned on Feb 1st I was essentially taking my Mastercard (MA) position to near nil to lock in profits [Locking in Profits on Mastercard (MA)]. The stock hit $220 that day. Now it is over 10% lower in the $197 range. So I am SLOWLY rebuilding this position, taking it from 0.1% of the fund to 0.65%. So this is my first "layer of buying". My hope is, if we get another round of serious selloff, they take this stock to $160s-$170 range. Then I'll get more aggressive in buying, and add more layers of purchases. Mastercard just showed us in their last earnings report their incredible transaction based earnings power. But this market refuses to let any stock off the hook, and any strength is sold. So now that they are punishing Mastercard for ... well for being a stock trading in the US market. That is the main sin. The stock has just fallen to its 50 day moving average, $195. Hence why I bought a layer. The 200 day moving average is down at $164. If we get that price I will be loading the boat with more layers.
As I keep repeating, right now "buy and hold" is dead. So I'm trying to trade around positions I really like, fertilizer, coal, and a select few others. Another example of buy and hold pain - I sold down 2 tech stocks Monday (!) to reduce exposure and raise cash [Reducing Research in Motion by 40% and a bit off Apple]: Research in Motion around $94 and Apple north of $130... Apple now is below $120 and Research in Motion near $82 (200 day moving average). Just trecherous to hold much long in this market. However, I am not going to buy back those stocks in this type of market - I am going to focus on strength, not weakness. Tech right now is weakness. The market is creating incredible value however; I am salivating at some of the valuations out there. But value means nothing in a bear market, so have to remain patient.
Long all names in fund; long none in personal account
