But one step at a time - first reduce exposure. Next step is to exit completely if there is a further degradation in price. I cut 2/3rds of the overall position which is essentially everything I added yesterday.
As always, I am amazed at the power of analysts to influence prices.
In a broader sense - its a tough time on the long side because all the stocks I like had an epic run in September and are prone to what has happened the past 3-4 days. People (the computers?) are rotating in lower growth areas now since they are trying to find anything that has not had a rocket rally the past 6 weeks. I don't like those areas as much since I am a growth type of investor. So either I have to stand aside, or chase after the current in flavor stocks, which are being bid up mostly for reasons that have little to do with growth prospects and simply finding the last few areas that have not been inflated. With that said, when people are chasing after low growth sectors in the "what is left to run up?" game, that usually signals we are close to the end of a move... traditionally. I cannot speak to the "Fed is intent to inflate everything" environment, as it is a new ball game. Until the dollar rallies, we are sort of in limbo.
Long F5 Networks in fund; no personal position
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