Tuesday, May 25, 2010

Bookkeeping: Cutting Back F5 Networks (FFIV), Tibco Software (TIBX) - Closing Intercontinental Exchange (ICE)

The strongest of the stocks in the portfolio, F5 Networks (FFIV) is finally relenting here with the multiple hard selloffs in the market. I still like how it has performed and I expect when the market bounces back it will be one of the first to rebound but as one of the main positions of any size I am going to respect the fact it has broken its 50 day moving average and cut back the position size for now (about 70%). These are going at about a 3% loss.

Tibco Software (TIBX) also was doing relatively well but is in the same situation - so I am selling about 60% for roughly a 9% loss. If the market does not rebound this will be TIBX's first close below the 50 day at current prices.

I am closing the position in Intercontinental Exchange (ICE) for different reasons - I want that slot open for other names. Since I began the position a few other names I am more interested in have dropped a lot so over the intermediate term I'd be more interested in holding those names over ICE. I am going to sell what remains (about 0.7% exposure) for a 9% loss.

As a sidenote - the selloffs in the former 2 names leave me with no major individual equity exposure (i.e greater than 1.5% or so) - when the market broke down the last 3 of my positions in February 2010 (pushing them below their respective 50 days), it bottomed shortly thereafter. We'll see if history repeats - hard for me to believe S&P 1045 holds so wonderfully - too convenient. But, we'll see what happens after this cursory bounce for the daytraders who flipped in right on schedule around 1045. We are right back to the game that was on late last week - looking for a deep downside open, a reversal, and close near the highs blah blah.

Long Tibxo, F5 Networks in fund; no personal position


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