Amazing - these 2 companies both preannounced (I & II) in the past month upside to consensus for their quarters and while trash stocks are rushing to the moon, these names are getting hammered. Wonders never cease. I'll admit to being flabbergasted here.

We said Monday there were a few names that we were slapping yellow caution on [Portfolio Positions with Yellow Caution Tags Attached] These 2 were the most at risk - since then both RF Micro Devices (RFMD) and Skyworks Solutions (SWKS) have simply rallied into resistance, but then stalled/faltered. We need to see that change to offer more of our capital to these stocks.

I have to respect the price action and these are the type of set ups I like to go short, not long. Since I like the fundamentals (which mean nothing) I am not going to short here, but just sell down the positions further in both until the market changes its mind. Which in this case means buying back into our positions at higher prices. I sold both positions down by about 40% today. I'll be more comfortable with prospects for each at RFMD > $5.20 and SWKS > $12.75.


Long RF Micro Devices, Skyworks Solutions in fund; no personal position