Market over extended
The market might be extended here a little bit in the short term. We took profits and closed positions in the valueplays(TSTC and FUQI). As we said before, these value plays run for 1-2 weeks and we had a great run in TSTC(around 40%) in 4 days. So, we are being prudent here and taking profits. We took half profits in VMW, MELI and RBCN. We will wait for a dip here to enter the market again.
If you have missed the breakouts recently, it’s better to wait for a pullback in the market and then buy these breakouts when they pulback to the recent breakout pivots or to their 10,20 day. We will provide these pullback in a timely manner(if and when it happens). One such example is IDSA. We missed the breakout around $15 and it surged to $18. We will wait until it pullsback towards the $15 level and then buy this. IDSA had recently announced strong earnings and the chart looks great.