Exits, 9/6/2024
How we did on the trades we exited this week.
Dids/Pexels
This Week’s Trade Exits
As soon as I exit a trade, I note that in the comments of the post where I first mentioned the trade; at the end of the week, I try to track them all in one post. Starting in July, 2024, I have also been tracking them in this spreadsheet. These are the trades I exited this week.
Stocks or Exchange Traded Products
Celestica (CLS 0.00%↑). Bought at $54.50 on 8/20/2024; got stopped out at $44.84 on 9/6/2024. Loss: 16.8%.
Options
None.
Comments
When I bought this stock as part of our core strategy last month, I wrote this about it:
A Portfolio Armor Top Name that has an overall valuation rating of 7 (on a scale of 0-to-10, with 10 being the best) and a Piotroski F-Score of 8 (on a scale of 0-to-9), according to Chartmill data. Valuations of 7 are fairly rare among PA top names. I’m buying the underlying shares here, as part of our core strategy (our core strategy is to buy equal dollar amounts of Portfolio Armor’s top ten names, but trailing stops of 10% to 20% on them, and replace them with current Portfolio Armor top ten names when we get stopped out). My guess is that we’ll be less likely to be stopped out of a top name with a higher valuation rating during the next market scare.
It looks like I was wrong about that, as I just got stopped out of it during Friday’s market scare.
All else equal, I still like the idea of buying a stock that’s a better value, but this illustrates that valuation alone does not give you downside protection. If you want to strictly limit your downside risk, you need to hedge.
As a reminder, you can scan for optimal hedges with the Portfolio Armor iPhone app, which you can download here, or by aiming your iPhone camera at the QR code below.
