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A weird day of trading

My portfolio is normally correlated with the market. When the market goes down, my stocks go down too. When the market goes up, my stocks go up too.

Today I experienced a total opposite behavior. The market went down (except the beginning and end of trading, but all my stocks went up:

Market vs Portfolio

Is this a sign of a divergence and market potential reverse? Or am I just too superstitious?

The end of trading was even better thanks to Targa Resources (NGLS) which was in talk about possible takeover by Energy Transfer Partners (ETP). That pushed the stock up by 17.7%

Targa Resources

This makes this stock my first price double! Should I sell part of my position or let it run? Will the deal be a positive thing for shareholders or should we run away?

Targa Resources paid nice dividend in 7% yield range with a great 9% dividend growth. Now the yield is at 4% level (which is still great). The question is, should I sell everything, a part of my holdings or hold?

I will hold as I only have a small number of shares in my possession and I believe, selling part of my mini-stake wouldn’t be worth it.

What do you think?

4 responses to “A weird day of trading”

  1. I personally is trying to train myself to sell stocks. At this moment I am not very good at selling stocks, but after observing market ups and downs, I am certain that selling stock at the right time might be a good idea. You can analyse this stock and if it looks that it has a potential to grow and it will go up even more, then wait longer. But if you have some other stock in your mind,especially if another stock is on sale now, then it makes sense to sell and invest this money in a different stock and hopefully double it again… I looked into your stock. It’s amazing how this stock went up since 2007. It looks like none of insiders is selling, so it might keep going up. But current price is much higher than analysts predictions and target estimates, so it might be the ceiling for now… but who knows?

    • Martin says:

      Sometimes it is hard to say. With a hind sight I probably should have sold the same day as the next day the stock fell back down as the supposed deal showed up as a hoax.
      I wonder who actually made money on a such trade. The stock rose 10 minutes before the close and next day morning it opened down with a huge gap. Those who bought in 10 minutes or 5 minutes up high, they lost money right in the morning.
      As far as trying to find out whether to sell or hold, well hard to say as I buy dividend stocks to hold them forever. Trimming capital gains is something I want to be sure before I do it. With this trade I wasn’t sure whether it was a good idea or not. And there is a saying, if you doubt it (the trade) do not do it.

  2. Grats on the double.Let your stocks run. I wouldnt sell that winner. Always nice to seeee your portfolio beat the market. My portfolio almost always fall in between the American market and Canadian market as I am invested in both.

    • Martin says:

      Thanks a lot. I agree and I decided to hold. I do not hold too many shares for trimming anyway, so it would be costly and benefit almost nothing. Moreover today the stock dropped as the deal showed up as fake.

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