I have to say I am mighty impressed by Apple (AAPL) and Baidu.com (BIDU). I cut these names Monday [Cutting the Strongest Tech] anticipating a tech stock breakdown. Many tech stocks have broken down - but these two have been really holding up. I don't want to really be "out" of them; I was just hoping for a pocket of serious weakness to add at far lower prices - that has not happened. So I am going to reverse part of my sales here and get some back - I still think there is more upside in other beaten down names but you have to respect such strength in a shoddy market. I had cut these to the bone (0.1% of portfolio)
Baidu.com (BIDU) I am adding back at $310s (sold earlier this week in mid $320s) - this is just below the 200 day moving average - back to 0.7% stake (chart below does not show the 200 day in the correct place)
Apple (AAPL) I am adding back in the $173s (sold earlier this week in mid $170s) - back to 0.5% stake
I could simply be impatient, but it's been 6 weeks waiting for a real sell off in these names ;) Maybe if S&P 1225 breaks and we get to 1200 or 1170s which is next support someone will actually sell these names in quantity so I can scoop them up at prices I prefer.
In case you've been living under a rock or in the Halls of Congress and are oblivious to the real world, Apple launched it's new iPhone today - usually there is a sell the news reaction but this stock in unbreakable right now. Pooring Americans will give up their Apple gadgets only from their cold steely hands it appears. I'll add more if there is true waterfall type of selling that destroys every name but thus far these two have held up.
With growth so precious (and becoming more so by the day) the stocks that have it might be getting even better multiples in the quarters ahead.
Long both in fund; no personal position
Via Fund my Mutual Fund:
Read the rest of original post »
