One thing about how I manage a portfolio is during downtrends I don't need to think that much as I am quite systematic. Once stocks begin breaking support, I head for the hills and hence the portfolio composition changes on its own quite effectively. (granted, you can be whipsawed if the stock - or market- turns on a dime after selling off). Of course the tricky part is knowing when to get back in after the flush of selling.
To that end, yesterday I got rid of VMWare (VMW) when the stock broke a key support level. Here is the outcome a day later.
Today, Citrix Systems (CTXS) is looking almost identical to VMWare yesterday. So I am closing out the position, for the same reasons I closed VMWare yesterday. I only am taking about a 0.5% loss, but gave up some unrealized gains here.
A lot of the "cloud" stocks are starting to behave badly again.
[Oct 26, 2010: Bookkeeping- Starting Citrix Systems]
Tuesday, November 16, 2010
Bookkeeping: Closing Citrix Systems (CTXS)
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