As mentioned in my last two posts, I am long several stocks with 50% allocations for each as of today.
Those stocks are Merck (NYSE:MRK), Halliburton (NYSE:HAL), 20+ Year Treasury Bond ETF (NASDAQ:TLT), Baxter International (NYSE:BAX), Abbott Labs (NYSE:ABT) and JetBlue Airways (NASDAQ:JBLU).
On Jan 30th I had been long Freeport McMoran (NYSE:FCX) although that has been closed since as posted on my twitter feed @cjmendes.
I am still leery to add to these positions as my analysis still points to a market that is precariously overbought and thinning by the day. I am of the opinion we will get a fairly sharp pullback in the days or weeks ahead which will be a good buying opportunity into a very select group of stocks.
Nonetheless the stocks in the portfolio have performed well.
Merck (MRK) My cost basis here is $61.06 and as of this writing it sits at $65.53
I like this sector quite a bit and I think a broad market pullback will reset this group for another major leg higher.
Halliburton (HAL) My cost basis on this one is $53.37 and it sits at $54.10 today. I am on the fence on this one and keeping a tight leash. It’s up nicely today but has been an underperformer over the past several weeks. I may very well liquidate this one as soon as today. Have limited amount of funds to allocate to positions and I think there are better opportunities elsewhere.
JetBlue (JBLU) My cost on this stock is $19.42 and it sits at $20.09 today. I am disappointed with the set up here. Take a look at my histogram below. When it fails topush through intogreen on price spikes it more often than not portends a move in the opposite direction. Liquidating full position today.
Freeport McMoran (FCX) I sold this position on Feb 10th at $16.46. It sits today at $13.84. This stock has been hijacked by daytraders…
iShares 20+ Year Treasury Bond ETF (TLT) My cost basis is $119.10 and it sits today at $120.45. This is a classic basing pattern and building accumulation as indicated by my histogram. Will be adding to this one soon.
Abbott Labs (ABT) My cost on this one is $38.26 and it sits today at $45.00. Love the sector, love the name. Reaching some lofty levels and a pullback is likely.
Baxter International (BAX) My cost is $44.38 and it sits at $50.27 today. This one has also been a great winner although I am disappointed with the lack of follow through on the histogram. Watching for now.
Markets are reaching extreme levels here within a very short timeframe. A Lot of market friendly news seems to be priced in and the tepid participation portends to a market with a quick trigger finger on the sell button should a catalyst emerge.
The VIX also points to a market that is complacent and therefore vulnerable to sharp pullbacks. Protection is very cheap in the form of puts and I suggest traders begin to evaluate using them here.
Sentiment sit at extreme bullish levels and a certain giddiness has developed among the perma bull crowd that typically comes along at important market inflection points.
My take, do your own research and reach your own conclusions!
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.