Trade: Home Depot (HD) and Raytheon (RTN)
Yesterday I made the move to do some stock trades. I bought back the shares I sold a long time ago to put my money back to work (instead of just playing with the house's) at $173.80 and I sold a third of my position of Raytheon at 153.38. These moves were made after we got a very strong jobs report and Federal Reserve President Jerome Powell finally softened his stance on the economy, inflation, and the need to raise rates.
Home Depot
While I certainly didn't get this stock as low as I would've liked to, it was harder to pull the trigger then because I had less favorable scenarios to work with. With less pressure of rising rates, ongoing positivity for job and wage growth that isn't growing wildly, and 10-year rates now back down around 2.67% we have an environment that can be helpful to home building, buying, and remodeling again. With spring around the corner and a consumer that has proven to be strong through the holiday season, I expect to see further retail strength. As such, I wanted to get back into a stock that is still down over 40 points below its high.
Raytheon
Unfortunately Raytheon is a play that just hasn't been playing out to my thesis that it would be a highly valued stock due to ongoing political tensions and a global military that is in need to further bolster itself due to the US stepping away from providing military support. On top of that we have a democratic congress that was just sworn in, making it likely that expecting larger military budgets to be harder to come by. While I think the company has the ability to do a good job, the industry as a whole is likely to under perform the market for now. As such, I've decided I would take a 23% loss on this part of my stock and look for continued strength to remove the position completely. As such, I'm also lowering the stock ranking to a 3.
Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
Home Depot
While I certainly didn't get this stock as low as I would've liked to, it was harder to pull the trigger then because I had less favorable scenarios to work with. With less pressure of rising rates, ongoing positivity for job and wage growth that isn't growing wildly, and 10-year rates now back down around 2.67% we have an environment that can be helpful to home building, buying, and remodeling again. With spring around the corner and a consumer that has proven to be strong through the holiday season, I expect to see further retail strength. As such, I wanted to get back into a stock that is still down over 40 points below its high.
Raytheon
Unfortunately Raytheon is a play that just hasn't been playing out to my thesis that it would be a highly valued stock due to ongoing political tensions and a global military that is in need to further bolster itself due to the US stepping away from providing military support. On top of that we have a democratic congress that was just sworn in, making it likely that expecting larger military budgets to be harder to come by. While I think the company has the ability to do a good job, the industry as a whole is likely to under perform the market for now. As such, I've decided I would take a 23% loss on this part of my stock and look for continued strength to remove the position completely. As such, I'm also lowering the stock ranking to a 3.
Notes:
Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash. Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.
Nothing on this site should be taken as advice, research, or an invitation to buy or sell any securities. All views expressed are solely of my own and I am not a professional money manager. Please consult with your financial adviser before taking any action in your own portfolio.
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