Selected Portfolio Positions Review: 07-08-20

By Lance Roberts | July 8, 2020

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

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Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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