Tactical Update: High Tech (PREMIUM-UNLOCKED)
*The following Premium Post was issued to TLS members mid-day on March 11, 2021.*
Tech stocks are flying off of our support levels — are they off to the races again?
Growth stocks, e.g., tech, Nasdaq, etc. are rallying strongly off of the support levels we identified — and nailed! — last week. In fact, the Nasdaq 100 is up nearly 1000 points off of the secondary support where we sold our hedges and started buying last Friday. Yes, 1000 points in just 4 days! And while that’s great news for us and our growth positions, it does not mean we are out of the 2-way market and off to the races again. In fact, as we mentioned in a post the other day, while we are willing to buy the dips in this 2-way market, we must also be ready to sell the rips. And this rally certainly qualifies as a rip.
More importantly, the rip is taking many of our growth positions back to their respective initial broken support levels. Another word for broken support is resistance. Therefore, as we mentioned, we are trimming our tech/growth positions into the rip to resistance (on the Nasdaq 100, that resistance is near ~13,150-13,240). To refresh, here is the list of tickers from Tuesday’s post that we planned to trim — and where. We have now sold a quarter to a half of our positions in those tickers that reached our resistance levels. Those are indicated in red and by a strikethrough below (some have hit initial levels and we are waiting on higher levels to sell more — and some changes in execution levels are marked by an *):
- ASHR: ~42.50
FDN: ~219, ~223* IBB: ~154, ~158
- ICLN: ~26.30, ~29.40
IGV: ~348*, ~356
- IHI: ~333
IWO: ~310, ~317
- LIT: ~62.80*, ~67
RFG: ~218* SMH: ~235
- XBI: ~146*, ~152
XLK: ~132 XSD: ~184
Additionally, as mentioned in today’s DSS, we bought a small position in micro-caps, IWC. As you know, we prefer to buy things into weakness. However, IWC is on the potential launchpad so we rolled some of the growth profits into IWC.
That’s all for now. As always, stay tuned to our DSS posts for further developments — they provide the most current updates to our investment portfolio and outlook. We touched on many of these potential moves in today’s DSS.
Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.