3/14 Kelly Letter Topics
Weekly market review
Fed oversees banks
EU bails out Greece
China likes Treasurys
Consumers still down
CT suing Moody's, S&P
US AAA rating at risk
Strong retail sales
Topping oil prices
Index chart patterns
Households suffering
Market at 1150
What range top means
FMD shooting higher
Bluefin tuna ban
2010 EDITION
Much has changed; good investing has not
The Neatest Little Guide to Stock Market Investing, 2010 Edition
Sun closed out the week at $5.63. I sold 25% of my original position at $5.70 and the final 25% at $5.85. With the first 50% sold at $5.50, my average exit price was $5.64.
Now, we wait. I'm hoping to buy back in after a sell-off. As always, I have no idea when that will happen but I would expect there to be a realization in the next few months that technology shares have re-inflated back to their bubble-top highs and that there are better bargains elsewhere. When the money shifts by selling tech and buying the current fad, Sun's price should drop back below $5. I hope to get shares below $4 again over the summer.
Sun closed the week out at $5.41 after dropping to $5.12 earlier in the week. The volatility continues apace. If you think it's all straight up from here, you have fishing bobbers for eyes. There will be a time to own Sun again, along with some of your other favorite tech names, but that time is after the inevitable pullback. It will come and it might be big.
As mentioned a couple of weeks ago in this space (Jan. 21st - scroll down), I sold half of my position at $5.50. I'm still holding out to sell the rest at a slightly higher price, which I could have done shortly afterward but didn't because I had my eyes on $6. After watching SUNW's chart, I'll be happy to get $5.70.
Do I intend to buy in again at a later date? You bet. It worked before and it'll probably work again. Now with the dollar slide continuing on schedule, the Fed preparing to raise rates, and P/E ratios hovering at levels not seen since the iridescent top of everyone's favorite bubble, booking our 60% three-and-a-half-month gain seems prudent.
