I’m going to take advantage of the half-hearted bounce this week to sell Microsoft (MSFT) out of Jubak’s Picks. (For more on this bounce, see my post http://jubakpicks.com/2010/06/10/return-of-son-of-bounce/ )
The stock has not performed well on up days for the market and looks locked into a short-term downtrend. (On the chart Microsoft is flirting with a negative cross-over where the 50-day moving average breaks below the 200-day moving average.)
I might want to own this one in the fall again when visions of higher sales for the Vista operating system and for Office 2010 start to dance in investors’ heads.
But for the summer I think I’d rather sit in cash and preserve my ability to put my money into the best opportunity of those that will eventually present themselves after the current correction (or whatever) gets resolved.
This sale will move my cash position in Jubak’s Picks up to about 37%. I’m selling with a 6% gain since I added the stock to the portfolio in July 2009.
Full disclosure: I will sell my personal position in Microsoft three days after this is posted.