Our 2nd to last natural gas stock, just another of the many names at the bottom of the portfolio in very small allocation, I am going to "capitulate" and sell Cabot Oil & Gas (COG) for now. It is looking increasingly more realistic now that these stocks need to build multi month bases (meaning sideways action at best) for a few months before any serious run can be mounted. From time to time we'll have the oversold bounces that if you time perfectly you can get the $40 to $46 bounce, cheer wildly ... but it must be sold. It is too hard to make money consistently that way. I have many charts that look like this.
We did walk away with this one with a gain if you can believe it. But only because we sold (layered out) along the way, and didn't buy back on the way down. It's a $400 gain but if you look at that ugly chart any gain is a miracle. So I'm selling the last bit here (0.4% of fund) and we have 1 less name to deal with. Since the hedge funds treat all these as "1 stock" there is, at this moment, no significant reason to own so many stocks in global growth since they all trade in tandem. We cut 7-8 late last month, so here goes another one to the wayside.
I keep thinking that when I sell these and "capitulate" it will mark the bottom and these stocks will go on a 2-3 month tear but apparently a lot more people out there need to capitulate and I'm one of the earlier ones. ;) Once we're all out - then the stock will rally without us. That's Market 101.
Now why did I not buy an airline this morning!? Cha Ching.
No position
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