One of the hardest things to do is to let your winners run. I find it much harder to find sell points, than buy points - even after all these years of doing this. One advantage of coming into the week relatively underweight long exposure is it put me in no rush to sell the individual equities I do own. But, with that said, I am starting to feel "piggish" when I see some of the charts of some of the stocks we have.
F5 Networks (FFIV) is one of those charts... (Click to enlarge)
This name was highlighted Monday amongst the "runners" in the networking space - [Mar 1, 2010: Fantastic Action in the Small to Mid Cap Networking Space] - and it hasn't stopped all week. Surely it can keep running and I assume right now it's beeping across thousands of daytrading momo type screens across Cramerica.
There is an entire style of investing that searches out these charts, and just tries to buy high and sell higher. But that's not for me... I am one of those selling at this point. Enough is enough - I am going to lock in gains with 70% of the position and try to buy back on any moderate pullback. I've sold 70% of the stake around $61.30; these shares were bought mostly in early February around $52, when the stock jumped back over the 50-day moving average. It's only had 4 down days since then.
P.S. I just read that the Russell 2000 is now up 14 of the past 16 sessions. That's dramatic - even more dramatic, considering volume is pathetic once more.
Disclosure: Long F5 Networks in fund; no personal position