Friday, May 2, 2008

Bookkeeping: Some "Raise Cash Trades"

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I am taking some off the table in 3 positions to raise cash; these are bit larger sales than normal since my cash level is below where I prefer.
  1. Intuitive Surgical (ISRG) this is now at a price similar to where I bought it (a bit too early) a few weeks ago - I still think potential downside risk to $260s so I'll buy back this stake there (or on a breakout over say $305 where the chart would improve dramatically). The stock is right below resistance of 50 day moving average of just over $300. ISRG down to 1.6% stake.
  2. Morgan Stanely (MS) - financials have had a good run this week - so I am cutting back a bit more today, just short on cash and want to have money available on pullbacks in other names. I'd like to add back in $46s (current $50). There is no real technical reason (hence I didn't post a chart) to sell here, just a stock that has run in a sector that is way overbought IMO.... MS down to 1.7% stake
  3. Foster Wheeler (FWLT) - tough call on this one; the infrastructure space has not been kind of late and earnings approach next week. I think expectations might be low since they "missed" last quarter and could easily see a big jump on even a slight surprise upward on earnings but sticking with my game plan of not being over exposed too much in any 1 name going into earnings I took some off as well. Technically the stock is breaking down below both its 50 and 200 day moving average but the "right results" in earnings could reverse that quickly. I think the weakness is more related to its peer group which has stunk of late. FWLT down to 1.6% exposure.
Either/or - I like my cash to be closer to 10%, and it's been in mid single digits as of past few days, so after my purchases yesterday (mostly coal) and this AM I needed to raise some cash. Until my investors send me new cash.... which in a virtual world... is impossible, I need to sell something to buy something else ;)

Long all 3 in fund; no personal positions




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