Locking in Gains and Making a Sale With Volatility Ahead
| Symbol | Transaction Type (Sell/Buy) | # Shares Traded |
|---|---|---|
| MS | BUY | 70 |
| WM | SELL | 167 |
After you receive this alert, the Portfolio will make the following trades:
Buy 70 shares of Morgan Stanley ($MS) at or near $184.50. Following the trade, the Portfolio will own 1,220 MS shares, roughly 3.75% of its assets.
Sell 167 shares of Waste Management ($WM) at or near $240. Following the trade, the Portfolio will own 775 WM shares, roughly 3.1% of its assets.
We are making these trades to prudently take advantage of the robust move that has unfolded in the shares of Waste Management so far this month, one that has landed them in an extreme overbought condition based on their Relative Strength Index reading. We can see this in the below chart:
In our view, this is the prudent move given the current market mood as well as the fact that we picked up additional shares of Waste Management for the portfolio at the tail end of September, near 206.
As we make this move, we are picking up some additional shares of Morgan Stanley following their sharp selloff amid concerns over the tone of the IPO market. This morning’s $50 billion M&A deal between EQT Corp. ($EQT) and Range Resources along with the fund-raising efforts from SpaceX ($SPCX), Meta ($META), Anthropic and OpenAI as well as others in the mix, suggest the concern over IPO related investment banking fees is likely overdone. As we’ve pointed out in the past, there are several components to investment banking fees, and that means we need to be mindful about the demand across that suite of services, not just IPOs.
As we make these trades, with about 10% upside to our $265 WM target, we will downgrade the shares to a Two rating from One and lift our check point to $210. We will also reset our MS check point level to $165.
Finally, the net of these two moves will modestly lift the Portfolio’s cash position, which is not a bad thing given the likely market volatility we’ll see this week. With that in mind, we will be sharing an updated shopping list and potential pick-up points near-term.
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- Adding to 2 Holdings After Earnings, PMI Updates
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- Weekly Roundup: Renewed AI Concerns Weigh on the Market and Portfolio
At the time of publication, TheStreet Pro Portfolio was long MS, WM shares.
| Symbol | Panic Price |
|---|---|
| MS | 165 |
| WM | 210 |
