| Homepage / Portfolio / Special Reports Trade Alert: Book Big Partial Profits in ANET Well, here we are. We have a closely contested election for president and control of Congress tomorrow, and the Federal Reserve’s latest decision on interest rates on Thursday. Any one of those could move the market on its own, but when they hit all at once, we need to be prepared for potential chaos. With that in mind, let’s lock in some of our huge profits in Arista Networks (ANET) by selling one-third of the position. We added ANET in July 2023, and it has been a spectacular stock. It has surged more than 140% in that time, outperforming the S&P 500 by more than 5X.
This is a stock we want to continue to own. Arista Networks remains a leader in next-generation networking. And advanced networking remains critical to the development of artificial intelligence and further technological innovation. That’s why we’re keeping most of our shares. At the same time, we can manage the position smartly when we expect near-term volatility. Ironically, the market itself could end up looking okay on the surface these next couple of days, but I expect a lot of rotation and churning underneath. At this point, I can’t confidently predict how that rotation will play out and which stocks might get hit and which might rally. By selling one-third of our shares in a huge winner, we can have the best of both worlds – banking big profits while hanging on to most of our shares for additional upside. Sell one-third of your ANET shares and hold on to the rest. Be sure to celebrate at least a little bit, and expect to put those profits back to work soon – as well as the hefty 86% gains we booked in Monolithic Power Systems (MWPR) in early October. I’ll be back in touch Tuesday with some initial thoughts around the election and the Federal Reserve meeting, and then I’ll have a special post-election TradeSmith Investment Report issue for you the following week. We should know more by then, and I expect to add at least one new stock and possibly more to take advantage of the long-term bullish setup that remains in place. Talk soon, Jason Bodner
Editor, TradeSmith Investment Report | 