It's a Good Day for Position Management
Make some adjustments to your holdings and position for whatever might unfold next.
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The indexes are building on Wednesday's technical breakout, but it is mild action with a limited amount of chasing so far. Breadth is negative due to some relative weakness in the Russell 2000 IWM, and the number of new 12-month highs has dropped to around 750. Big-cap names like Walmart WMT, Chubb CB, and 3M MMM are doing the heavy lifting.
It has been a very good run for small-cap traders like me, with some big movers like Humacyte HUMA and Sensus Healthcare SRTS. I'm still looking for some new buys but am making adjustments to some positions so that I'm ready for whatever happens next.
I always want to be in the position where I'm happy to buy more of my favorites if they pull back. I may ramp a position up into strength, but I'll reduce it and lock in some gain when I can and then be ready to buy aggressively on the next bout of weakness. Even the best stocks don't go straight up.
I've also reduced some of my bigger names, like Nvidia NVDA and Shift4 Payments FOUR, and have increased my cash position.
One new buy today was The Trade Desk TTD, which is breaking out of a nice-looking trading range over the $92 level. TheStreet Pro Portfolio bought more shares today as well. Another higher-priced name I'm watching is Powell Industries POWL, which manufactures power substation packages and is poised for growth in AI data centers.
The meme stocks have fizzled out very quickly, but aggressive traders are targeting a few junk names in China. There is a limited number of 10% movers today as the hot speculation cools off. The quickness of the reversal in meme stocks is a good illustration of how traders learned from their past mistakes. If you are lucky enough to catch one of those big moves, then you had better not get greedy and hope for more.
The S&P 500 is chugging along while small-caps are correcting, so it's a good time to make some adjustments to your holdings and position for whatever might unfold next.
At the time of publication, James "Rev Shark" DePorre was long HUMA, SRTS, NVDA, FOUR, TTD and POWL.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider SRTS to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
