Sell Rest of KRNT, SITM Moves to Hold
This has been another extremely challenging week. Yesterday the Nasdaq opened in the green and was up over 2% before selling off hard into the close. It ended down more than 1%. Today, the Nasdaq is toying with a somewhat key technical level at 14,000.
While we are seeing signs that some stocks are firming up, its still something of a minefield out there when looking across a spectrum of the stocks of really attractive, high-growth small-cap stocks.
As one subscriber recently wrote, this selloff feels different from other recent ones in that it’s more like air being let out of a tire. That’s a great analogy. Whereas in the months following the March 2020 lows every dip was bought, now every dip is being sold. It’s a notable change of market character.
Today we’ll raise a little more cash by selling the rest of our position in Kornit Digital (KRNT). The weakness in this stock lately has been as consistent as the strength was prior to the correction. It’s down daily. SELL REST
I’m also moving SiTime (SITM) to hold. The stock is roughly 10 points above its 200-day moving average line, which coincides with the depths of the September correction (SITM down 21% at the worst). I want to put the stock on alert in case it breaks below that level next week. HOLD
That’s it for now. As is always the case during corrections, there will be opportunities for big profits when things turn around. But now it’s more about preserving capital, taking small positions and just biding our time until things look better for the types of stocks we’re interested in.