Weekly Update March 05, 2017
As has been the case the last several weeks, our indices continued making new all-time highs last week, peakingfor all three of the biggies-S&P, Dow, and the Nasdaq. I still continue to believe that we still have not seen techland come together like other sectors have and have a string of nice up days as yet. Maybe, when the corporate tax plan and cash repatriation rules are made clear by President Trump and his administration, we will see the sector run like a scalded ape.
Again, matter of when and not if.
Last week was fairly quiet for us in terms of earnings but the biggie for the account was dodging a serious bullet by bailing on our Palo Alto Networks position before the disappointing results. I had an article out on Forbes that talked about further downside in Palo Alto even after the haircut it has taken. (Link below).
Having said that, we ended the week up 48% year-to-date. Given the fact that our account is mostly cash or near-cash (shares to me is near cash since those positions can be sold in less than a heartbeat) at almost all times, I am satisfied with the performance thus far. However, the year has just begun and we have a long road ahead of us. Our Chinese stocks are still big laggards in our portfolio but continue to believe that their time is coming. As soon as the President turns his focus on trade with China, we should start to see the clouds clear.
Earnings season for Q4 is almost behind us however within a month we will be right back into it for Q1:17 results. We do have some off-quarter companies like Techdata, Finisar, Ciena,Verifone reporting their earnings this week in techland, so there will still be some excitement in the sector.
Last week we got called away on our Amazon equity position (I had sold calls against the underlying) and I am comfortable with that completely. In addition, we banked another huge gain in Micron (in less than 4 days) and I also opened a new position in Netflix although it was an addition to our overall position in the company. Last week, I also sold off our position in Braodcom for almost a triple although in hindsight I should have held through the earnings report. However, as you all now, there is n wudda, shudda, cudda at our firm and in hindsight every single man, woman and child on the face of this earth is a genius investor. LOL. Cest la vie. I also closed out FB last week and some of our Apple as well. Finally, there was some repositioning on our Google last week given the volatility in techland. I also opened a new position in NVDA and added to our positions in TSLA and OCLR last week as well.
A continued reminder for all of us.
Please keep your positions in size with your account size (value). Mot importantly please remember that I am running a marathon here and not a sprint. I am in no hurry whatsoever for any position and thus will not enter a position unless I feel the risk/reward is stacked in my favor. Yes, I will occasionally have positions work against me despite the risk/reward prior to the trade but if I was batting a thousand, none of us would be in our little room. We would all be on our own private islands. Even more important for all of us to remember that trades and opportunities will come no matter what the markets are doing.
Not a sprint but a marathon.
For your reading pleasure:
Our futures are indicating a lower open with the e-Minis down 6.25 and the Nazz futures indicating a lower open of 10 points.