PORTFOLIO UPDATE: STILL RIPPING
During the trading day I tweeted the following:
The original research report on AUTH was published on May 8th here.
In my constant pursuit of investment perfection, it became apparent that AUTH was at a point where it warranted a cessation of exposure.
Any of you who have been following along for more than a few weeks know that I enjoy riding profits, believing that it is imperative to performing optimally over the long-term. I am not frightened off by the potential to give back profits just because I have them. That is an amateur's game that should be quickly be set aside if you wish to prosper in the markets.
AUTH presented me with a number of reasons for today's actions:
1. I hate rumors of anything having to do with the IPhone. A good deal of AUTH's recent advance is due to speculation that they new IPhone will feature AUTH authentication software. While it may indeed be true in this case, I have seen way too many IPhone software, hardware, wig and lipstick runs end with nothing but rabbit ears.
2. It hit my technical target that I have been mentioning over the past week. Please see the chart below.
3. My long-term trend indicator looks like it has a good chance of flipping over should the market move against my expectations and keep falling back. Remember, my short-term and intermediate-term trend indicator flipped in May taking me to a 50% cash position. Should the long-term trend indicator flip, I will be 100% cash regardless of what my feelings or research tell me. I'm a slave to risk management and these are my tools.
After taking profits on AUTH, I stand at roughly 30% invested, leaving the portfolio in a heavy 70% cash position. My only long exposure is in SYNC and ATNY.
AUTH
