I have been a bit idle in the last couple of days, I'm starting a new business plus testing some strategies on small cap stocks, so I'm updating the website now.
I have sold both MDCO and CELG, because they broke down and activated my stop-loss orders. I never regret selling stocks that go down, no matter how I like them, if they sink on the stop-loss level, they're out. I won't probably look at the again, unless they bounce back significantly and make new highs. Both are good stocks but their trends might be over.
A big disappointment was Blinkx (BLNX.L), which slumped 21% on an article by a Harvard Professor, Benjamin Edelman, who questioned it's sources of revenue. He looks like an expert on this subject (although he has paid to write the article and refuses to reveal the identity of the buyer), and I have missed some things in my analysis, as the company might be using shady ad tactics to get traffic and extract money from advertisers. I'm not so sure if I would be able to discover such things even if I went into checked every detail in it's financial statements. My understanding of their business was not as deep as I thought. My stop loss got hit around 136, so I lost nearly 19% on a stock, which showed me a gain of 30% just two months ago. Too bad, but as they say, shit happens. For situations like this, I have stop losses and other stocks to diversify and limit a loss to my entire portfolio. Nevertheless, the UK Value/Growth portfolio got hit pretty hard, it's now up only 11% from November, down from 20% in January but still much better than -4.65% for the FTSE100.
I have sold both MDCO and CELG, because they broke down and activated my stop-loss orders. I never regret selling stocks that go down, no matter how I like them, if they sink on the stop-loss level, they're out. I won't probably look at the again, unless they bounce back significantly and make new highs. Both are good stocks but their trends might be over.
A big disappointment was Blinkx (BLNX.L), which slumped 21% on an article by a Harvard Professor, Benjamin Edelman, who questioned it's sources of revenue. He looks like an expert on this subject (although he has paid to write the article and refuses to reveal the identity of the buyer), and I have missed some things in my analysis, as the company might be using shady ad tactics to get traffic and extract money from advertisers. I'm not so sure if I would be able to discover such things even if I went into checked every detail in it's financial statements. My understanding of their business was not as deep as I thought. My stop loss got hit around 136, so I lost nearly 19% on a stock, which showed me a gain of 30% just two months ago. Too bad, but as they say, shit happens. For situations like this, I have stop losses and other stocks to diversify and limit a loss to my entire portfolio. Nevertheless, the UK Value/Growth portfolio got hit pretty hard, it's now up only 11% from November, down from 20% in January but still much better than -4.65% for the FTSE100.
My US stocks went pretty much in tandem with US markets, down around 2%. Earnings of ININ and KORS surprised to the upside, both stocks jumped 14% and 17% respectively. On the other hand, AMBA and UTHR are retracing all their previous gains will soon reach my selling points.
Hong Kong and India fared the best, HK Value/Growth actually gained 2%, while HSI lost 2.4%, thanks to the gains of NewOcean Energy (342.HK) and Sunley Holdings (1240.HK). In India, the best stocks continued to outperform, mainly Hatsun Agro, Aurobindo Pharmaceuticals and Eclerx Services.
We will see what the next weeks bring, but I have a hunch this correction might last longer. S&P500 is dancing dangerously close to the 150-day exponential moving average, what would be the 7th time since the start of this bull market in 2009 (it crossed the line exactly 7 times during the 2003-2007 bull market, before everything went crashing down). Regardless of whether markets go up or down, I'm waiting pai be waiting for the next best stocks.
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