Continuing the theme from earlier today of culling some of the weaker names, I am closing out NetLogic Microsystems (NETL). Quite amazing how quickly the technical picture changed on this one... from bullet proof about 3.5 weeks ago to a total mess now. Like many names it is due for an oversold bounce (to $29s) and surely will the next time the market jumps 2-3%, but the intermediate term story has degraded chart wise. I am selling the last 0.4% stake for a 9% loss.
I have quite a few replacement candidates for the 3 names sold off today; just trying to figure out if this bounce off the 200 day moving average in the S&P is far too convenient to be any sort of real bottom. It seems so to me. Let's see what the market does with S&P 1120 which was the bottom of the trading range the past week as it approaches it from below. Quite a 2 day trading range, from S&P 1148 yesterday morning to 1100 mid day today (4% swing) ...