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Selected Portfolio Positions Review: 07-15-20

By Lance Roberts | July 15, 2020

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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • Same as with CVX above.
  • Stop set at $37.50

DIA – Sold Position To Raise Cash

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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

Portfolio 07-15-20, Selected Portfolio Positions Review: 07-15-20

  • 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. 

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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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