Selling Into Strength

Selling Into Strength

The act or practice of selling a security while the price is rising but when the seller expects the trend to reverse. This could result in a smaller profit but allows the seller to lock in profits before the reversal begins, which reduces the potential for loss. Selling into strength carries no risk for the seller, but it does come with the opportunity cost that the reversal will not take place and the seller will miss more profit. However, selling into strength may prevent a serious loss that comes from waiting until the reversal materializes.
References in periodicals archive ?
We find that most investors are still anticipating a market correction in order to add to equity positions rather than actively selling into strength.
We are early in this rotation into cyclicals at the start of a new economic cycle in China, so some are still operating as in a bear market, selling into strength and clocking profits by rotating swiftly between sectors," Hong added.
The current positive effect on the share price is likely to be shortlived and we would recommend selling into strength.
And there has been a recent trend of selling into strength when the market hits a soft patch," said Chen Xin Yi, a commodities analyst at Barclays Capital in Singapore.
Once again, we have seen retail investors timing equity purchases astutely, buying on weakness and selling into strength.
We would encourage Ciena investors to be selling into strength.
Tommy Hilfiger (TOM:NYSE) has had a brilliant move since March and we are selling into strength.
There was evidence suggesting some investors were selling into strength with regional funds seeing net outflows of $63.
The positive effect is likely to be shortlived and we would recommend selling into strength.
Market fundamentals remain positive for corporates; however, as spreads remain tight BlackRock will look to add to the portfolios selectively, increasing allocations on market weakness and selling into strength.