In Top 20, we are trimming a recent purchase from mid-September to add to our most recent purchase, making the position sizes more reflective of their potential returns. The stock we are trimming has done well since our buy, rallying 14%. To my one-year target, which may be a bit too conservative, it offers just 28%. Our add, on the other hand, offers more than 50%.
In CG/B, we are selling our recent buy in the Financial sector. The stock rallied dramatically over the past two weeks since we added it, improving by 27%. It offers 33% to my one-year target, which is one of the lowest returns in the model. More importantly, the stock has moved from oversold to slightly overbought. I view the stock as somewhat risky at the higher price in the near-term - perhaps we will get another chance to buy it. We are also trimming one of our Technology names that has performed well and is now slightly overbought. The stock offers 38% to my one-year target. The trades give us a little cash to work with should any opportunities present themselves during the upcoming earnings season. Before these sales, the recent rally had left us slightly above the 75% maximum in equities. Afterwards, we will be at 71%.
In Sector Selector ETF, we are downsizing. By this, I mean we are reducing our Mega-Cap exposure and increasing our Small-Cap exposure. The trade leaves us positioned a bit more aggressively.
Comments