When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Tech Alert - Box, Inc. (BOX) – SELL – TAKE PROFITS
SELL – TAKE PROFITS - Box, Inc. (BOX) at $15.82
Closing Trade
5-1-2020
Portfolio weighting: 15% (EQUITY)
Number of Shares = 956
I am disappointed in Box’s price action and therefore going to take proceeds to reload for a better trade.
Shares are down today meaning that Box has failed to participate in any short-term rallies after bouncing from its lows.
The stock did spike to $16.84 and I thought that was the signal to join in on a broader rally like many of the 2nd tier cloud stocks.
Well, Box failed to materially join in on the last gap up and tech shares are exhausted here as Amazon earnings could mean a sell-the-news type of event.
The FANGs reported and now the tech has no catalysts to take it higher in the short-term.
We are taking a small profit here showing that even when I am wrong, we don’t lose money.
Tech is overbought in the short-run and anyone really looking for a bullish trade then perhaps look at Twitter which has cheapened somewhat after a bad earnings result.
Selling our 15% equity position in Box means that the tech portfolio is now net negative after a monster V-shaped recovery up in tech shares where we scored big in MSFT and FISV call spreads.
Now is the time to sit on our hands and read the tea leaves because the low hanging fruit of the tech v-recovery has been harvested.
Winning trades are a lot less obvious and the tech market starts to price in 2nd quarters’ expectations.
Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES
Here are the specific trades you need to execute this position:
Buy 956 X (BOX)………….……………………..............…….……$15.82
Net Proceeds:………………………….………..………….….....$15,123.92
Profit = (956 X $15.62) = $15,123.92 - $14,932.72 = $190.20
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
