Today I exhausted a good portion of the cash position I had built up.
I added to my Nutanix position for the third time in a week or so. I now have more than twice the number of shares I held at the end of May.
I added back to Shopify and Wix (both which I had trimmed).
Still holding more cash than usual, but these were too attractive to ignore. The position I have trimmed the most this month is AYX and I didn’t add back to it, yet…but it is starting to look very attractive.
I just made a short list to see the pullbacks from 52 week highs for some of our stocks:
price now 52 high Drop Conviction (personal)
SQ 63.42 69.4 8.62% High
MDB 53.35 59.54 10.40% Medium
SHOP 156.08 175.11 10.87% High
TWLO 53.89 62.34 13.55% Medium
AYX 35.49 41.47 14.42% High
OKTA 48.82 61.00 19.97% High
NTNX 51.25 64.87 21.00% High
PVTL 23.95 31.24 23.34% Medium
According to the media "Stocks fall as trade worries weigh". The above stocks are not affected by a trade war at all and there is no company specific news that would explain the pullback.
Granted these stocks had some pretty good runs recently and so they are supposed to fall harder I guess.
I added some small amounts to NTNX, AYX and OKTA. Let's see how this unfolds further...
Niki
No, not at all. The majority of investors, I’m sure, believe ANET will grow solidly for years to come. A goodly number, however, also believe that the growth is already priced in.
Nice post on the percentage off of 52 week highs for several of the companies we track. Good to put that in perspective on a down day and potentially use the info to make buying decisions (and/or selling the ones that haven’t dropped as much to buy those that have).
Either way, it was good info and just wanted to say thanks.
there is no company specific news that would explain the pullback
Maybe for MDB there is. They announced a new $200 million convertible note offering this morning. Might have exacerbated it’s drop this morning, tho I’m sure would have been down with everyone else regardless
“Not me, I did the opposite and bought a ton just before the drop. Still learning. Sigh.”
There is only one thing to learn from this:
No one knows the future!
Like everyone else on this planet, I don’t know what will happen later today, tomorrow, next week or any other future date.
This may be a very temporary drop or it could be the first day of a 2 year long 60% drop.
Nobody knows …
Today I spent about 1/3 of my excess cash, from 15.51% of portfolio down to 13.70%. I am currently reserving 10% of our portfolio in cash for market drops of 10% or more.
Since I did the purchases this morning, our portfolio went from -3.06% to -2.42% now as many companies seem to be recovering a bit.
“The market opened under pressure reacting to an article in the WSJ pointing to new plans by the administration to curb investing by Chinese companies into critical areas involving technology that could power the China 2025 initiative. The impact got worse after Stephen Mnuchin put out a tweet that suggested barriers to investments for all countries. I don’t think that was his intent, but it was a poorly written tweet at the very wrong time.”
I’m won’t comment on the strategy, whatever might ultimately be, to avoid politicizing it a post. However, I feel this will pass/resolve before too long.
It wasn’t the buying at the peak that I am burned for. Haha, I’ve done that a lot and still my choices go up thanks to MF subscription and membership to this group. Before this dip I was up 41% June to June and 28% YTD.
But what I really did wrong was move 23k from my target 2020 fund into my Charles Slob account to have cash to buy. Bang! the second I saw it show up I spent it. And the next day? Well, you know the rest of the story.
I should have been patient.
This will be a great lesson, like you say, no one can predict the market. But I need to act a little slower with my buying and selling habits.
No, not at all. The majority of investors, I’m sure, believe ANET will grow solidly for years to come. A goodly number, however, also believe that the growth is already priced in."
priced in? isn’t it never about what already occurred but about what will occur? One cannot price in something if he does not really know what it could become in the longer run. I guess it depends on your perspective but I think Arista has plenty of opportunities it can and will capture.
so buying it now could be very lucrative in the longer run.
Funny thing, I was doing the exact opposite of what some folks here were doing. That’s due mostly to the differences in the portfolios preferred by board regulars and my own (“buy low/sell high”) portfolio.
Now that the Market is closed, I can report the following:
My portfolio was UP 2.79% today. My portfolio is my primary source of income (aside from Social Security).
My portfolio was up solely on the price performance of Enphase (ENPH) which was up 5.44%.
I was selling Enphase stock throughout the day. I sold sizable lots at $6.80, $6.77, $6.92, $6.83, $6.90, $6.96, and $6.94 price points. It took a lot of selling to bring my position size down to 70%.
The good thing is that I now have a good bit of dry powder to deploy (~10%). But I’m not in a buying mood right now. I’m waiting to see how the whole trade war debacle gets resolved.
Content to simply check my favorite technical sites each day.
