Sell TriNet (TNET) and Dynatrace (DT) for Quick Gains of 8% and 14%
The market is enjoying a decent bump after yesterday’s Fed meeting when the FOMC’s SEP projected three rate cuts in 2024 and Jerome Powell sang a dovish tune during his press conference.
Let’s take advantage by selling two positions that are bumping up against resistance and failed to break out during yesterday’s rally. Who knows what will happen in the coming weeks! Booking these profits will also open up a few slots for new opportunities in next week’s December Issue.
First, sell TriNet (TNET). We jumped into the stock about four weeks ago because I thought the stock had the potential to deliver a relatively low-risk, modest gain in the subsequent weeks/months. Since we bought in, the stock has inched steadily higher and is now pushing up against the October highs. While TNET could easily punch through this level, it could just as easily sit here and do nothing or pull back. The bottom line is that we’ve enjoyed a nice little rally in a stock that I was transparent about not wanting to hold for very long. I wrote, “It’s not a stock I want to get into a long-term relationship with right now. But it looks like an interesting momentum play. We’ll take a swing.” We swung and hit a single. Let’s take it. Sell TNET for a roughly 8% gain in four weeks. SELL
Second, sell Dynatrace (DT). We bought the stock in October and are up about 14%. DT is also bumping up against resistance. There’s nothing particularly wrong with DT, however, we have exposure to some of the same big-picture trends (albeit coming at them from different angles) with both GTLB and ESTC. SELL
