Bullseye’s Trader Talk
The pendulum of positivity is swinging HARD to the right. Five of my fifty longs have hit their targets within a week, and two more are fast approaching their respective upside limits as well. It’s the polar opposite of what we saw in December, when the pendulum of negativity swung disturbingly to the left. Back then I bought in the hole, and those nerve-racking purchases have paid off handsomely. So by definition, as the market rebounds exuberantly to new highs, now I must sell. While I’d prefer to own quality growth companies for the long haul, pendulums swing only so far before gravity inevitably brings them back to center. Put another way, I believe in taking profits on specific positions when their targets are reached. I own over forty additional names which offer plenty of upside, and I uncover new companies to buy every two weeks. This dynamic process of rotation within the portfolio reminds me of a song from third grade music class… Make new friends but keep the old. Some are silver and the others gold.