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Tech/Telecom Portfolio Recap 12/20/2010

|Includes:Cisco Systems, Inc. (CSCO), NETL, NSM, NTAP, ON
The Tech/Telecom book was up 8 basis points, underperforming the NASDAQ Composite which finished the day up 25 basis points but outperformed the SMH’s (Semiconductor ETF) which was down 83 basis points. We came into the day with about 9 positions with the majority of them Semiconductor names. Came into the day long ALTR, NETL, NSM, and ONNN against short SMHs. I was long these specific Semi’s because they were setting up very nicely for swing trades. ONNN and NSM continued to behave well today against the index while NETL and ALTR showed concerning action early in the session and I cut the trades on weakness.

CSCO had a nice morning and traded at the highs of the day (R4) for the majority of the session. I sold 60% of my position at R4 and then bought it back on the close. I continue to like CSCO long and believe it will break up through $20 before it goes down to $19, but at the same point I understand it will sell off towards the end of the day and feel confident taking the majority of the trade off into early strength. CSCO closed the day up 36 basis points.

NTAP was the biggest winner in the book today closing up 2.8% after a Stifel Nicolaus analyst upgraded the stock and Canaccord analyst said it was his best idea for 2011. NTAP was strong off the open and held the gains for the majority of the day. I sold the stock into strength today but will be looking to buy pullbacks.

I covered the SMH’s just below R4 as the hedge acted as the second best performer on the day. I took the book down to three positions: CSCO, ONNN, and NSM as the reward to risk is still in my favor and I like the way they acted throughout the day. I’m keeping the book small and sticking with more liquid position’s as volume is light around the Holiday Season and I don’t want to feel handcuffed in early trading.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.