With the addition of 4 new names to the long portfolio, I am going to sell off Polaris Industries (PII). The stock held up very well during the May selloff but like Valassis Communications (VCI) which we sold earlier this week, it finally could not withstand the pressure cooker of almost 2 months of selloff (with a 2 week break inside that time frame). I still like the theme here, but I am going to simply keep focusing on better relative strength stocks. This was one of those names, but not right now.
Just like Valassis I never had a chance to build up the position since this is not the type of market where intermediate purchases are paying off (long side trades have to be quick and fast), hence I never took profits when they were there since the position size was small. Therefore I am going to take a 5% loss versus the May 22 purchase price; exposure was only 0.5%.
If PII can get back over $58, the story might change.