Wednesday, April 14, 2010

Bookkeeping: Cutting Some Quality System (QSII), NetLogic MicroSystems (NETL) and TriQuint Semiconductor (TQNT)

While it is currently a sin to sell any stock, or any index position (which I made the mistake of doing yesterday) I am going to try to remain somewhat prudent and cull some profits along the way.  Even in charts that are flawless.

Quality Systems (QSII) spiked for reasons I cannot find a few days ago... it is sort of hanging right at the same level it spiked to.  I've seen many charts like this lately which after the spike, rather than pulling back the stock sits there for a few days and then breaks out on top of a breakout.   Maybe QSII will do that too but it's sort of strange to see so many stocks doing what was once rather rare.  I am going to sell 33% of the position around $65.60 and place a limit purchase order in the $62s in case it falls back down to get the exposure back.

TriQuint Semiconductor (TQNT) finally is getting some love from the investment community.  This is a price breakout so momentum traders will love a chart like this.  However there is no volume confirmation the past 2 days... but that has not mattered in the new paradigm market.   Momo chasers will be adding to positions at this level; I on the other hand begin to cull.  This is our 3rd largest position... I am selling 33% of the position around $7.90.  Much like QSII I'll place a limit purchase order in the lower $7s to see if I can get the exposure back... if not, I'll let the rest run.

NetLogic MicroSystems (NETL) once more proved the new paradigm George Costanza market is in full effect.  When a stock issues more shares and dilutes you - do not fear it, embrace it.   The company announced it was going to dilute me on March 24th so what did I do?  I did the opposite of what made sense, and bought more!  And... I win.  This is one of the top 3 stocks technically we have now... a barn burner.   I will only sell 25% around $33.00.  At this pace I hope they do another stock dilution next week so the stock can get to $40.  And another... and another.  I'll place a limit purchase order to buy back shares under $31 but the chance of that filling are about 2% in this environment.

While I am selling these names to lock in some profits I am still looking for other stocks to add to (to keep long exposure consistent) that have pulled back and offer lower risk entries ... obviously it's a chore to find anything to build a longer term position in right now since almost everything is overextended. 

Long all names mentioned in fund; no personal position

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