Sell APi Group (APG)
The market remains messy and is acting in a one step forward, two steps back fashion, at least where growth stocks are concerned. As of early afternoon today it looks like many of our stocks are testing their lows from earlier this month. Suffice to say we would like to see these levels hold. If not, we will likely be exiting more positions as a break of support could leave many stocks in a vulnerable position.
There’s no doubt a defensive posture is preferred as it becomes increasingly important to preserve capital. Still, it’s also important to recognize that a pause/consolidation/correction is entirely justified given how far many of our stocks have run over the last three to 12 months.
Today we’ll move incrementally more conservative and step aside from APi Group (APG). This was a conservative pick to begin with and had a great uptrend. But that has now broken as APG has just fallen below its 50-day line after a four-day decline, and an earnings report that did little to impress investors. We’ll step aside around our entry price. SELL