Market timing.
Like most ... I expected a pop on the NYSE listing but I since I was early to the party, by Monday, I have my left foot out of the door.
I decided to sell 2/3 Monday because of 3 things:
1. The pop fizzled ... it was downtick, downtick, downtick
2. The failed rally on Friday following the Thursday market jump.
3. The lousy overall market Monday produced a lot of tech stocks that are at good price levels like LU, CSCO, MSFT ... so I put some SAP money into them
In this market, I espouse the buy and trim strategy rather than buy and hold. I look for technical points above and below the 50 day MA
to increase/decrease my position. I also look for momentum ebbs/flow
which are very well associated with anticipated earnings. Right now, SAP has corrected about 10-12% from its high, the other good techs like CSCO, MSFT, LU corrected up to 15%.
A lot of people may consider TA as voodoo but I have found it a very useful complement to fundamental analysis. So what's the TA on SAP.
It's still on a very clear uptrend ... the price is near the 50 DMA, the volume is thinning out, the DAX correction is stabilizing, the DOW and NAZ are stabilizing ... good price to start accumulating SAP.
Of course, some would wish to pick it up at 40 (160 pre split). If it goes to 40 tomorrow, I'm out ... but if it goes to 40 over a period of 2 months, it's a great buying opportunity. The way a stock moves to a given price is as much important as the price itself.
LONG AND STRONG ON SAP
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