Interestingly with so many stocks going from oversold to overbought in the span of 72 hours, F5 Networks (FFIV) is not among them. While it barely suffered a scratch during the selloff the past few weeks, it has not really advanced much either. Instead it has built a nice 5-6 week base between the mid $80s and low $90s. Today is the first day it has breached $92.50 since early August and in a benign market I'd say this is a no brainer for a new leg up. In *this* bipolar market - who can ever tell.
Being amongst my favorite names fundamentally, and lacking that many options in new names that are not already near extreme levels of euphoria (3 days ago you could not give away stocks, now people are running over you to buy them), I'll begin to allocate back into this name with a 1% exposure today. If the market was not up in vertical fashion I'd be buying a bigger stake. I was hoping for that gap to fill in the $77s at some point during the S&P 500's travels down to 1040, but my dream was not to be had.
The action in the S&P 500 remains good today, but if we have our typical Tuesday premarket surge and strong day we are going to be very prone to a pullback late Tue-Thu next week. I don't see any specific catalyst on the calendar but I've run through about 50 stocks this afternoon that have run 15%+ in 3 days. Either we need to see a rotation into new names, while those names take a rest and consolidate, or we will need a broader pullback for at least a session. Even chicken wings are going crazy....
Long F5 Networks in fund; no personal position
Friday, September 3, 2010
Bookkeeping: Beginning to Rebuild F5 Networks (FFIV)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows