Saturday, June 7, 2014

The week gone by


The markets surged higher last week and hit all time highs on the S&P and Dow. But the rally seems exhausted, dragging its feet as it is unwilling to go down. Admittedly the news on the economy is getting better and that is probably why the market is not willing to give up any of the gains. But I am not sure if the next quarter will have any surprises. I expect most of my holdings to report inline with maybe a couple of surprises to the upside and I think most of it is already priced into my stocks. But I do have a few notable things that happened last week that I would like to highlight.

1. Good sense prevailed and BRCM finally gave up its cellular ambitions. Like when they gave up on Disk controllers, this is a watershed moment for BRCM as profitability and RoI will appreciably improve and the stock showed it this week. Come 40$ I think I will start trimming those holdings. I think it will have legs till 45-50$.

2. Financials seem to be finally getting some legs. I am all invested in with XLF. Nothing much to do there except go on the ride for the next few years. Maybe I will add a little more if XLF breaks 23$

3. GE finally broke out of its range and got some legs last week. I think their backlog and shift to industrials is really gaining momentum. Again nothing much more to do there - as I am mostly fully invested.

4. INTC also broke out of range. I am looking for a 30$ handle to get out of INTC. Too much technology in my portfolio.

5. MT went below 15$ and I added. Lets see how long I will have to wait for this to turn appreciably.

6. Finally AAPL showed some legs. But hard to tell whats coming with the stock split. Hopefully, in the near term some momentum from retail investors and maybe news of addition to an index or two with the lower price. (DOW?)

2 comments:

  1. Got out of 80% of BRCM a an average of about $40. Still holding the remaining 20% for the improvement of balance sheet following loss of the mobile business. Will mostly get out at $50 if I get the chance.

    ReplyDelete
  2. Got out of 80% of BRCM a an average of about $40. Still holding the remaining 20% for the improvement of balance sheet following loss of the mobile business. Will mostly get out at $50 if I get the chance.

    ReplyDelete