I keep a core position and trade around the edges of most stocks I own - my buys and sells are not a function of time but price. In the "old days" (like 18+ months ago) it often took stocks weeks or indeed months to put on 15-20%+ type of moves so when I sold a partial position I'd have to wait a long time to buy it back. Nowadays, in this bipolar market, it often takes 1 day to get the same effect. So while it looks like I am "rapid fire trading" this is a condition of the market volatility - not a change in style; what used to takes weeks or months, now takes hours or days.
Into the love fest by bulls late Friday [Bullish Until 4 PM] I let go of Regions Financial (RF) near $7.50 and Lennar (LEN) near $9.50. This was in the 2-3 PM hour. Here we are - a whopping 4 hours later in "stock market time" and both are down nearly 20% from where I let go of them, so I am going to get back part of that trading position in each. RF reports tomorrow; I usually won't buy ahead of earnings but we already had a preannouncement last week. I am getting RF back in the $6.10s which is actually lower than my initial purchase price and LEN below $8.00.
I also added a touch (smaller scale buys) to
- Potash (POT)
- BHP Billiton (BHP)
- Thoratec (THOR)
- Blackstone Group (BX)
- HDFC Bank (HDB)
- Morgan Stanley (MS)
Most of these positions I had sold down to 0.1% to 1% type of stakes so I am just rebuilding some long exposure I had let go. While it would sense for the market to dip further and take a rest, in case the snorting bulls return tomorrow I am making some buys in names either severely beaten or holding up well in a bad tape.
Long all names mentioned in fund; long Regions Financial in personal account
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