Speed’s just a question of money…
Grease Rat: Like the sign says, “Speed’s just a question of money. How fast you wanna go?” – Mad Max (1979)
Good morning and welcome back to the sand dunes, where water’s worth more than gold. Turns out the markets survived another round of “Greece contagion” and it’s trying to really pop through to some new recent highs.
The best tech trader I know, Jay Somaney, asked last night in WallStreetAllStars.com “Platinum Conversation”:
Is anyone here concerned about technology has become the go-to sector all of a sudden as evidenced by the green we were seeing in large cap tech growth stocks despite the Dow being down almost 250 points at one point?
And that question bothered me all night. Yes, I’m concerned that technology has become the go-to sector all of a sudden. Not just because of yesterday’s action, but because of all the recent big moves higher we’ve seen of late.
If you’ve been copying my moves at all, I’m sure you’re aware that our portfolios have had a huge run since the times we were buying calls back in the August panics. But are you aware of just how big a move the broader markets, in particular, Nasdaq has had? Since last Friday’s lows, we are up more than 3%:
In just the last week, since last Monday’s lows to this morning’s highs, the Nasdaq is now up nearly 200 points, or more than 8%:
And finally, since those August lows when we were indeed buying into the panic, the Nasdaq is now up more than 11%:
The upshot of all this discussion is that I am doing a little bit of selling. I had some Marvell $14 calls that expired last week that I’d bought in those August panics that turned into stock Friday. I’ve still got some Marvell calls near these strike prices that date out into 2012 that I’m holding, along with a small remaining piece of the common. But I’m selling about 3/4 of the common that I presently own. I’m also going to do some more trimming and even a complete sell or two today and tomorrow, so stay tuned to TradingWithCody.com for details.
Mad Max Ending Scene
