Sell Toast (TOST)
With the market continuing to have indigestion following the Fed’s 75bps rate hike and higher-for-longer messaging (regarding interest rates), we’re going to trim our position in Toast (TOST) today to reduce the risk of things getting away from us. This sale follows sales of other names last week and early this week, several of which were to lock in partial gains.
It’s worth mentioning that the market is currently retesting its June lows. How this goes is – to state the obvious – important as far as near-term market performance goes. Investors are very much on edge as they now see a higher risk of recession and the Fed’s “bend ‘til something breaks” philosophy edging closer to breaking something.
At the same time, overwhelmingly bearish sentiment is a reliable contrarian indicator. And with sentiment in the toilet right now, and with the major market indices retesting their lows, the stage is set for a potential bounce.
Still, all things considered, I still want to reduce our exposure a little as doing so gives us more flexibility in the coming weeks and months. That’s key to staying in the game.
Sell Toast (TOST) for a roughly 12% loss.
