Author: Carrie Luckner
Covestor model: Long-Short Hedged
Disclosures: Short LULU, Long WFC, X
With the turmoil in Greece and talk of a soft patch/slowdown in the US, these last few days in the market have been anything but fun.
It’s important to remain nimble, but not capitulate and sell at fire sale prices. Since last Wednesday (6/22), I covered Sodastream International Limited (NASDAQ: SODA) at a small profit, and made a few small but profitable trades in some old favorites, like Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX), JDS Uniphase Corporation (NASDAQ: JDSU), and Ciena Corporation (NASDAQ: CIEN).
Painful as it’s been, I’m still playing Lululemon Athletica inc. (NASDAQ: LULU) from the short side; ultimately I’m confident it will work out (see my previous posts on why I think it’s a short), but right now this position is torture. One of the worst mistakes a trader can do is cut and run from a position not performing the way they want or think it should, getting out of the trade at the worst prices because they can’t take the pain.
As for my largest positions, Wells Fargo & Company (NYSE: WFC) and United States Steel Corporation (NYSE: X), it’s a game of wait and see. Both names have underperformed the broader market, each for different reasons, and I do think the worst is behind them both in terms of stock performance.
