Time 11:00

Trading Technique:

Take the opportunity when the market is up strong on a given day to look into the portfolio and judge each position again. Look for signs of weakness that you may have missed when originally taking the position. If you uncover problems put your ego aside and sell the position. Use strong market days to clean up and tighten up the portfolio. This will allow you to constantly sharpen the portfolio's focus on the very best ideas. When the market eventually sells off the hit won't be as bad because the weakness will already be pruned out, which will make it easier to hold on to the best ideas.

Stocks: SUTR, VMW

SUTR: Perfect example of above theory. This stock has an S/D rating below optimum level and EPS not quite up to the stellar performance we require. I allowed the good chart pattern to cloud my judgement.

VMW: Bought it this morning in the excitement of the strong open but on further inspection realize that the 60 min. is not in sync and the daily chart is not strong enough. In fact it is actually negative. So putting aside the Ego once again I'm selling the stock for a small gain.