In this week’s selected portfolio positions review (07-08-20), 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.
AAPL – Apple, Inc. (Looking To Take Profits)
- Over the last couple of years, we have bought AAPL, taken profits, added more on dips or breakouts.
- With AAPL pushing into the 3-standard deviation overbought zone, like many of the market sectors, we are looking to reduce our position slightly to take in some of the gains.
- We will look for a pullback to add back to the position.
- Stop loss is at $310
NFLX – Netflix (Looking To Take Profits)
- Like AAPL, we added to our holdings of NFLX previously.
- Like AAPL the recent surge has taken the stock into an extreme overbought condition.
- We are looking to reduce our position slightly and wait for a correction or consolidation to work off the extreme conditions to rebuild the holding.
- Stop set at $385
AMZN – Amazon, Inc.
- Also, like AAPL, after adding to AMZN previously, the near vertical spike in the AMZN suggests that profit taking is prudent.
- We will look for an opportunity to rebuild the position on a pullback or consolidation.
- Stop set at $2350.
AEP – American Electric Power (Reduced Holding)
- AEP and DUK have both been good holdings for us in the past, but defensive positioning has lagged as of late weighing on overall portfolio performance.
- We still like both of our holdings and suspect they will perform better during a market correction. However, in then meantime we reduce our positioning in both DUK and AEP by 1/3rd.
CLX – Clorox Co.
- 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 in CLX recently and rebalanced the position in portfolios.
CMCSA – Comcast Corp.
- 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.
CSCO – Cisco Systems
- As with CMCSA, we also added to our position in CSCO recently for virus play.
- CSCO is a bit overbought, but holding support at the 200-dma.
- We have a stop on the position at $40.
MSFT – Microsoft Corp. (Looking To Take Profits)
- As with AAPL, AMZN, and NFLX, we are looking to take profits in MSFT at some point soon.
- The position is extremely overbought and extended, so a correction is likely.
- We like the position long-term, but valuations are very stretched currently.
INTC – Intel Corp.
- After adding INTC, we were unable to gain traction on the position and we were stopped out.
BLL – Ball Corp.
- 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 have added a small position to start, with a stop at $67.5