Today, we made a discretionary adjustment to our Chaikin Power User long stock portfolio. We took double digit profits on still Very Bullish rated but nearing overbought EMC corporation. (Report card on closed trades here ) There were no sell signals according to our rules on this strong Computer Software and Services Industry Group performer, and the longer-term buy-and-hold investor would likely avoid making the move we made for tax reasons alone. However, with our investment time horizon of 3 - 6 months (matching what's optimal for the Chaikin Analytics model) and a 10.29% win racked up in just over 2 months, we choose to avoid riding out a possible pullback when we see a better opportunity in the space. See all of our current positions here.
$EMC's Overbought / Oversold oscillator appears to have rolled over, marking a lower high while price hits a higher high. We swapped into $SYMC on a Money Flow BUY signal. $SYMC also has a Very Bullish PG ratting, with strong industry and strong technicals. Relative strength recently turned convincingly positive, and price broke above the long term Chaikin Trend while under decent accumulation (read as recent "sea of green" on Money Flow indicator). Unlike $EMC, this name is currently in oversold territory, has strong insider buying and minimal short interest.
We think $SYMC has some room to the upside... and there's nothing wrong with locking in a 10% gain in $EMC. Besides, our Chaikin Power User Portfolio has thinned as we've raised our stops in the face of weakening intermediate term trends in now former holdings. Our portfolio is a bit tech heavy as a result, and that make sense considering it's one of only a couple of sectors showing bullishness relative to the market. Even this swap does nothing to address that issue. We'll continue to look for bullish trades in other Industry Groups showing strength provided market conditions remain bullish on the intermediate term.
We think $SYMC has some room to the upside... and there's nothing wrong with locking in a 10% gain in $EMC. Besides, our Chaikin Power User Portfolio has thinned as we've raised our stops in the face of weakening intermediate term trends in now former holdings. Our portfolio is a bit tech heavy as a result, and that make sense considering it's one of only a couple of sectors showing bullishness relative to the market. Even this swap does nothing to address that issue. We'll continue to look for bullish trades in other Industry Groups showing strength provided market conditions remain bullish on the intermediate term.
These are the kind of moves we could never make without Chaikin Analytics putting the wind at our back. With the most important fundamental and technical information not only at our finger tips but also what's driving institutional trading decisions, we make subtile adjustments with conviction and in the hopes of maximizing returns. Hoping is NO fool's errand here: while the market was up some 30 points last year, a basket of Very Bullish Power Gauge rated stocks were up 50% more. And 2013 is no fluke, Chaikin Analytics has crushed the market since launching in 2011 and in a decade of independent backtesting prior to that. Join us as Chaikin Power Users and get Chaikin Analytics for super attractive discount. The deals last until September 3oth.
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