I said I'd be looking to add some long exposure but that does not mean I am not going to sell some as well; what I want to do is sell some of the overextended names and buy some things that are not so overbought. This way I can keep a decent long bias, but just change the mix of names & exposures.
Here are some sales (I've included Relative Strength index in the chart to show one signal of 'overbought')
I'm selling half of remaining Acme Packet (APKT) near $36 and will look to buy back on a pullback.
I'm selling half of Netflix (NFLX) in the mid $140s and will look to buy back on a pullback
I'm selling 40% of BorgWarner (BWA) [current largest position] over $48, ditto on buying on pullbacks.
I'm selling half of Tibco Software (TIBX) in the $15.20s area, ditto on buying on pullbacks.
Long all names mentioned in fund; no personal position