Taking a Healthcare Winner Off the Board
We’re rebuilding our cash as the market move becomes more extreme.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
| XLV | Sell | 580 | 189.16 | 0 | 0.0 |
After you receive this alert, we will sell all 580 shares of the Health Care Select Sector SPDR Fund (XLV) at or near $189.50. This will close out the Portfolio’s position, which returned more than 15% since mid-September.
While this will reduce the Portfolio’s exposure to the healthcare sector, we are making this move as the recent market rotation has pushed this smaller position size deep into overbought territory with an RSI above 77. If the position size were smaller, we’d be trimming it back as we lock in these gains, much like we did with Costco (COST) earlier today.Â
We will place XLV back in the Bullpen and look to revisit them as the market’s current extreme condition subsides and the shares pull back from extended levels.Â
This move, along with the COST, will lift our cash position, giving us more ammo for when the market finds its footing. It will also allow for more flexibility in picking through existing positions and others that have become oversold in relatively short order. Â
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long COST and XLV.
