NO LONGER HAPPY WITH BEING IN THE MISSIONARY POSITION, THE MARKET FLIPS
Now everyone can rest their heads well tonight. We got a pullback. The market is no longer satisfied with being in the missionary position and is looking to broaden its horizons. Aficiondos of wild markets unite...your time has arrived.
Those of you who have been keeping up with my thoughts should have, at the very minimum, been mentally prepared for this. Hopefully there are those who managed to profit from or avoid this all together. The signs were all there and they were abundantly clear for anyone who chose to listen. From the manner in which the volume kicked up on the reversal last week. To the breakdown in commodities, namely the precious metals. To the generational trajectory that was hit on the dot in the Nasdaq.
What now? We certainly could have a bit more downside left. Not much, however. Perhaps 150-200 more points on the Dow and roughly 50 on the Nasdaq Composite seems about right from today's closing levels.
I took the opportunity today to rotate from portfolio positions that have been underperforming into the outperformers over the past couple months. GSIG, while being fundamentally sound and possessing substantial upside from here, just hasn't been putting in the performance of some of the other names. It's up about 2% since I mentioned it on January 18th. Not even close to the double digit percentage gains in some of the other companies in the portfolio. I trimmed a bit from GSIG today and added to SPRT.
Since gapping up after reporting earnings on February 9th, SPRT got as high as 3.80. It has now pulled back to 3.15 and seems to be in a good position to increase exposure.
I'm not considering any new positions at this point. Have a good mix within the portfolio of companies that have significant opportunity due to restructuring/cost efficiency/partnership efforts. No reason to tinker too much with something that seems to be functioning optimally at this juncture of the uptrend.
I have a lot going on this week. I will be diving into some deeper market analysis over the weekend.
