Well, its always great to come to the party late but as our readers know, we have been going to the sidelines for the past week or two.
I would have responded sooner but Spring Break created a nice vacation from 3/8-3/12 for the family. It is not until now that I am catching up.
your decision to go to the sidelines was 100% accurate withe the exception that the Biotech got hit, which may have spilled over into the drugs.
As of last Tuesday, we were close to 20% cash and letting the LLTs create the necessary exits. By today, we were close to 50% cash as more LLTs created exits for us from Monday and Tuesday. As of the close to day, (we did some entries) we were roughly 20% cash and 80% equities due to some rotation. We are extremely light on the Top Tier Equipment stocks and have most of the equities in the CHIP sector with a good deal of representation in the wireless communications and specialty IC companies. We have a good piece of our equities in the Internet and Networking infrastructure stocks. While I would have to go back with a calculator, I would figure we are presently <30% invested in the equipment sector and close to 40% in the IC chip sector and the rest is in the networking and Internet related stocks. This is just a guess. When we put the issue to bed tonight, I will try to come up with more accurate percentages.
More specifically, we hold no positions in AMAT, LRCX, or TER and only a small amount of NVLS, KLAC, and ASML. We are more heavily represented in the Second Tier equipment stocks since they include ASYT, CFMT, CYMI, and SFAM.
the IC stocks include the top 7 wireless communications stocks and stellar performers like MIPS, PLXT, QUIK and RMBS, who are weathering this storm fairly well.
Hopefully this validates your conclusions and direction you took. we might have been on slightly different roads, but your move to the exit was timely and good. We might even say that once again, when they were telling us to buy, we had our hats and coats on and were heading for the door.
For the most part, if our readers followed our LLT strategies to the letter (not even I did that and I created the LLTs) they were walked to the exit with handsome profits and will have the opportunitiy to re-enter at 15%-25% discounts.
AV |
