ICICI Bank (IBN) shot up 6% today placing the stock in a severe oversold position. Hence considering the market being up 8 of the last 9 days, Stone Fox used the jump to unload our stock in IBN in the Opportunistic Portfolio. The more long term focused Growth Portfolio cut back its position by roughly 15% as well.
IBN still has long prosperous future ahead, but the market and particular the stock were ahead of itself short term. The RSI was an off the charts 82 and the CCI hit 262. Both numbers that can typically signal a short term top. Hopefully the stock will swoon back to the low $40s soon and we'll re-enter the position.
2:20 Update: Trade was just below $48. So far the stock and the market have held up better then expected from over bought conditions. Would imagine the stock does dip back to mid $40s, but at some point i'd expect a breakout above the current ranges in the SP500 to leave a lot of people expecting a pullback that doesn't happen.