We are tweaking Top 20 today,trimming a big and a small Technology company to add to a small Industrial (which I actually view as a Technology company) and to Emerging Markets. The two trims have performed very well of late and are near resistance, though each offers close to 50% return to my one-year target. I continue to like both of these positions - this is tactical. They are both moderately overbought. Both of the adds have been laggards and are coming out of bases. The ETF, which we first added in February, also offers about 50% to my target and is a little oversold. I believe that my target could be too conservative. The trades leave all three of these positions slightly below average.
The other add is also coming out of a base. The company recently pre-announced a weak quarter and updated its guidance, so an overhang was removed. The stock moved up, but it offers still over 60% to my target. It too is a little oversold. This stock will now be one of our larger positions.
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