The recent rough patch in the market has taken a toll on two of our stocks. And while the Cabot Emerging Markets Timer is still positive, the iShares MSCI Emerging Markets ETF on which it is based experienced a reversal on March 21, and has been trading flat and tight for more than a week.
Accordingly, we are going to sell one of our holdings that has buckled under selling pressure and put another on Hold.
Our sell is Banco Santander Brasil (BSBR), which was added to the portfolio as a half position on February 24. The buy price was 11.12. BSBR is now trading a hair above 9, after gapping down this morning and sliding lower. The stock’s decline may be part of the general pullback in financials. We will sell our half position. SELL.
We will also place BeiGene (BGNE), which we added to the portfolio on February 17, on Hold. We bought at 40.59, and after spending weeks trading flat under resistance at 40, the stock has made a move to the downside. The stock has potential support at 36, which was a stiff resistance level in late January and February. We’ll give BGNE a chance to get going again, but any decisive move below 36 will cause us to kick the stock to the curb. HOLD.
Several of our positions are feeling the effects of the market’s bumpiness, and if it becomes necessary to take further defensive actions, we won’t hesitate. We will have another look at our portfolio on our regularly scheduled update on Thursday.