I am selling two very small positions in the healthcare sector as the charts are acting poorly - NuVasive (NUVA) has been poor for a while and in fact this is a chart to short, not be long; Luminex (LMNX) has been going sideways for a while but has started to break down. Usually I keep long positions I still have interest in but whose charts are poor at the bottom of the portfolio as 0.1% "holding" stakes but since there are a lot of new potential ideas out there, I am going to clean house.
NUVA - A chart to short, not be long
LMNX - Just took a turn for the worse after a lot of sideways action - looked promising about 3 weeks ago near $24 (breakout?!) - then bad since.... today was a killer.
Since we've added some new names of late, I am doing this for the exact same reasons I sold some stocks out of the portfolio last week - I only want to hold X many positions and this period of "calm" the past 6-7 weeks gave us time to see what stocks have the best relative strength; I want to buy those type of names on any serious pullback for the longer term. More speculative type of players would prefer to buy the most beaten down merchandise for short term flips, but that's a different time frame than what I'm aiming for. So I'm opening up slots for future purchases if we indeed get a more permanent move down in the coming weeks/months or if individual names of interest pullback to support levels. (i.e. better entry points)
Both positions ended in about $4K losses; we're exiting the 0.3% stake in Luminex (LMNX) and 0.1% stake in NuVasive (NUVA). Both positions were started in September right before the epic 70 days of hell began in mid Sep - late Nov [Sep 16: Bookkeeping - New Position in Luminex] [Sep 2: Initiating NuVasive Position] Manageable losses considering the crushing time frame I owned them.
I like both names fundamentally but both are rich in valuation and if the charts don't support the stock, you cannot make a great case on a valuation basis. We'll be back to these in the future.
No positions
Did you like this article?
's
