I am selling off some more winners here from stocks we've discussed this morning and yesterday.

First Perfect World (PWRD) which we just discussed - as we just wrote we'd look for mid $25s to lay off more shares

The stock is now trading back to the mid $24s range, up 13% - as I outlined in the previous post on this stock I'll continue to cut back on this name as it approached resistance which in this time frame means mid $25s or so.

....and we got them within an hour (stock has hit $25.59), so I am cutting the shares I bought just last Friday in the $23.70 (which I had sold in the $26.20s). So in a week we made 7.5% on this batch and as we said this morning on the smaller stake I bought in the $21s-$22s we made a quick 12-13%. In other words, this has been a terrible buy and hold stock, but a heck of a trading stock. So far. In time it will become a great stock to hold as well if it continues to execute. But we want to see the stock above $26 and then I'll be happy to stay in. I outlined this strategy here. So we'll keep buying on dips and flipping into resistance levels - and then one day when the stock breaks above resistance we will have to "pay up" (buy at a price higher than we sold) but until then we can generate gains trading it.

Perfect World is now down to a 0.4% stake.

On to Cummins Engine (CMI) which I wrote a piece just a few minutes after I read the news yesterday, wondering why it was up so strongly. Well after a flood of news reports yesterday, we got more clarification ... it sounds even more bullish than on first glance BUT this has been a huge move on something that helps the company in the long run so I am going to take a risk here and take Cummins down to a very small stake (holding position) on this huge 2 day run. The stock is now in the $73s/$74 range so I am flipping out most of what remains and going down to a 0.15% stake, and look to buy back on a pullback. This is a bit of a risky move because the stock could just continue to run ...