Despite having some of the best relative strength in the market the past few months, my timing of trades on F5 Networks (FFIV) has been poor. Ironically the relative strength of the stock has been my undoing... even though I love stocks with high relative strength. Since I like to buy strength and cut back when support is broken I've been cutting back the position just as the market is about to do a general U-turn, since F5 has been one of the last companies to succumb to selling pressure.... and then find myself scrambling to put that exposure back on (at higher prices) after things look more stable in the market - which is about the time we get a new selloff. So I've been buying high and selling low on this name.
So I changed things around the past few weeks and instead of cutting back on weakness bought on some weakness - despite breaking support of the 50 day moving average. Normally I don't do this but you cannot take the FFIV chart as a stand alone - keep in mind the overall market was extremely oversold a week ago Thursday ....therefore I felt more comfort in topping off the position in the $69s.
Last week I decided to remain patient and instead of taking immediate profits on the Wednesday bounce, wanted to see if I could layer out of some of the position near 52 week highs - which happened yesterday. Therefore, finally a good trade here with a purchase in the upper $69s and sale in mid $76s; roughly a 10% gain, and I sold off 1/3rd of the position into that.
Still among my favorite names as it remains 'reasonably' valued, with a great chart, and a good growth story. Unfortunately, like almost every stock, it remains a hostage of the greater market.
Long F5 Networks in fund; no personal position.