Monday morning I cut 60% of our Rackspace Hosting (NYSE:RAX) position as the stock was not participating in a rally led by small and mid caps. Today, with the stock still acting as if it's in a bear market, I am cutting almost all the rest.
Indeed, if I had more long exposure to balance against it, I would be flipping this into a short position. If one of my other short positions stops out, I will probably replace it with RAX as the stock does not want to rally despite massive tail winds from the market. (Click to enlarge)
But for now, with the stock up at $19.20, we are able to sell just 10 cents below where we sold Monday; minor losses here since the position was expanded the previous week just a tad bit higher in price. I will change my mind if the stock can get over $20 and show some life. I am keeping a 0.1% allocation just to keep it on my radar at this point.
Disclosure: Long Rackspace Hosting in fund; no personal position