When Do You Sell?

ALL THE TIME. You sell to manage risk.

If you listened to major media, you would have sold in August and never bought another stock for the rest of your life.

I have little to complain about. Other than my man boobs, receding hairline, Richard Nixon nose and my graying nose hair gone wild, life is perfect.

The stock market is much the same. Other than oil at $90/barrel, a homebuilder crash, subprime woes, a destroyed dollar, a President who struggles with english, and a parabolic China, there is not much to complain about.

Despite the ‘serious?’ worries, the only stocks I want to sell are Homebuilders, Microsoft and Sirius…short!

I want to hate the market. That would make me ‘fit in’ and be a winner at ‘cocktail parties’, but I can’t. I love all of my 40 plus stocks right now. They act like perfect children. Today only Citrix did not respect my wishes.

People continue to ask me for my favorites RIGHT NOW which is a damning situation, but you are all so supportive that I will lay it on the line.
If the market starts imploding tomorrow, look for these to implode…faster. It is on your heads. In order of gut feel (my portfolio):

IBKR
RICK
LOGI
DLB
SINA
ADBE
SLW
PAAS
ORA
SGMS
ESRX
GPRO
BBBB
EMC
ERTS
IGT
NEOG
STX
HNSN

The following are just so hot and fast that they are in no particular order:

qdel, auxl, aapl, bidu, goog, cmg, oih, grmn, nvt, trmb, amzn, jnpr, tasr, immr, ctxs, infa, loop, fslt, cme..I own some more that are doing well, but I need to run.

It’s amazing to see this list all in one post as I have been writing about one or two at a time for a couple years and slowly my portfolio has swelled with names.

My current dogs are Amex, Planet Out and Starbucks.

Now that I look at the list, I am FREAKED OUT to be so long. I am on margin as well. It should be noted that stocks only make up 30 plus percent of my whole portfolio right now.

Hope this helps.

Disclosure- Long all the stocks mentioned

15 comments

  1. richard emerson says:

    Yes, you sell all the time to manage risk, but I think you assume everyone knows what risk you’re referring to. Money Management: Create a portfolio where 90% is at 10% risk and 10% is at 90% risk. You can sleep at night because only 10% of your portfolio is at high risk. Now extend the portfolio two bull years. Your Risk/Mix is now 75% at 10% risk and 25% at 90% risk. Can you sleep at night knowing that 25% of your portfolio is at high risk? This is why you sell all the time.

  2. Bruce says:

    Senior Lindzon, you’re a self declared trend guy; why short SIRI when its broken a 2 year downtrend & it latest trend is now clearly up? Why short MSFT when its flirting with a significant breakout if it hasn’t already broken?

    Great list: I think you’re kicking young mens (Fly) asses down elevator shafts.

  3. Todd says:

    Howard,

    You KNOW you want to own ISRG. It continues to beat analyst’s estimates quarter after quarter; and it’s been entering into new medical applications & procedures.

  4. Howard Lindzon says:

    shorted some goldman at 223 today for a momentum trade. like pissing in the wind.

    Bruce…i am on margin with 30 percent of my portfolio o=in stocks. the last two years of bullishness has not caused a market top.

    the other 70 percent slippage – lol

    it’s actually in porn investments.

  5. richard emerson says:

    Wikipedia defines porn, but I didn’t find a connection to, “Where’s the other 70%” and I googled the phrase. I’ll assume it’s a punch-line.
    When I replied, ‘Slippage’ I was ignorant and still am ignorant as to the meaning of, ‘Where’s the other 70%’ Perhaps Moom wil elaborate.

  6. moom says:

    Howard said only 30% of his portfolio is in stocks. So I asked what the other 70% is invested in. I understand “porn investments” to mean “hell no I won’t tell you” or something like that.

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