In this week’s selected portfolio positions review (07-15-20), we want to review a few of the trades we made recently. We also want to discuss a couple of positions we make take action on soon.
CVX – Added To Exposure
- After building a position previously in CVX, we are adding to our exposure slightly for a couple of reasons.
- The first is we like the value built up within the sector, and;
- Secondly, energy has been a more defensive rotation area in the market.
- Furthermore, with yields in excess of 6% we can afford to give these holdings some room to wrok as they come off deeply depressed levels.
- Stop loss is at $75
XOM – Added To Exposure
- Same as with CVX above.
- Stop set at $37.50
DIA – Sold Position To Raise Cash
- We sold DIA (2.5% position) to add to other positions in the portfolio. Overall, the equity allocation to the portfolio was only reduced slightly, but we built a bit more defensive position.
COST – Reduced Position To Take Profits
- While we like our position in COST very much, the stock has literally gone parabolic over the last couple of weeks and is now 3-standard deviations overbought.
- We reduced our position slightly and took in some gains.
- On a correction back to the 200-dma, we will add back to our holdings.
CLX – Reduced Position To Take Profits
- CLX has been a stellar performer since we added the position earlier this year.
- The COVID trades have been in favor, but with the extreme overbought condition we took profits for a second time this year after increasing exposure in June.
- Like COST, the 3-standard deviation extension will not last long.
CMCSA – Added To Holdings
- In the same vane of the “work at home,” “COVID,” trades we added to our holdings in CMCSA.
- We continue to like the position although it has underperformed the market as of late.
- With the resurgence in the “virus” we suspect we will begin to see better performance as the rotation to these types of companies continues.
PG – Reduced Position To Take Profits
- As with the others, we took profits in PG due to the extreme deviation and extension of the position.
- On a pullback to support we will add back to our holdings.
- We have a stop on the position at $112.50.
WMT – Reduced Position To Take Profits
- As with COST and PG, we took profits in WMT due to the extreme deviation from the mean.
- On a pullback to support we will add back to the position, but we are okay for now with a slightly reduced holding due to the risk.
- Stop is set at $117.50
UPS – Reduced Position To Take Profits
- Similar story with COST, PG and WMT.
- The sharp advance in a very short-term period since adding the position, requires a bit of profit taking.
- We like the position but need a pullback to add to holdings.
- Stop is set at $104
BLL – Added To Position
- BLL is an industrial company, which makes aluminum cans.
- With the virus gaining traction, individuals are consuming more at home, and channel checks show that BLL has been running at near capacity to meet demand.
- They are also considered an “essential business” so the threat of a shutdown is eliminated.
- We added a small position to start, with a stop at $67.5.
- We added to that position this week.