I’ve seen retail investors and professional money managers sell way, way too early, way, way too often. Learning basic portfolio management and discipline will pay enormous dividends over time and most investors completely ignore that skill set. When I was running dozens of millions of dollars I encountered this exact problem constantly. I can’t count how many times I wanted to size a new position after doing months of research, calling suppliers, combing entirely new industries, only to have the stock start taking off before I got a chance to really make it a big bet for my investors.

The big fish are definitely on hiatus as they sip champagne and eat caviar at their mansions in the Hamptons for the last couple weeks of the summer as usual. But the question is whether they'll be net buyers or net sellers when they get back. Feet to fire, I think if the market can sustain these levels or can rally into summer's end, those guys will feel naked and/or overly short and they'll have to be buyers in September.

You know how stocks are up big from their recent lows and also up near multi-year highs? You know how there's suddenly little or no panic about Greece, Spain, the whole EU/financial industry insolvency issues? That is the time to be trimming the trees around your portfolio's house. For the last two years or so, we've been buying almost every time the market panics over the EU crisis and we've been trimming/hedging every time the EU crisis moves from the front pages. I don't see any reason to change that playbook quite yet. And my main point is that now, when nobody else is panicking about the EU, is the time to panic about the EU once again — trim some longs and put on some short hedges if you haven't already done so.

The most exciting thing I see on the horizon isn’t the ad sales that will almost certainly materialize, but the network effects of a billion Android users and the ways Google can leverage that scale. If one billion people are on the same mobile OS and you know where they are precisely and they have a biometric scanner on their phone, do you really need Mastercard and Visa to take their 3% to verify the funds and identity? That’s why Google is working on Google Wallet. If one billion people are constantly sharing their location by virtue of having their phone switched on, could you sell them stuff based on where they are? That’s why Google is working on Google Offers. And if one billion people care more about the device than the network and will pick the service based on who has the cool new Android phone, couldn’t you launch your own data service? That’s Google Fiber. And that’s why Google is working so furiously on Android, not for the $10 billion in ad revenue that it will surely get, but the $100 billion in revenue it can potentially tap into over the next two decades.

In 1996 I came to New York City with a degree in economics from the University of New Mexico, a suitcase, a guitar and just about nothing else. I dreamed of becoming a “Wall Street Rock Star,” so while I was searching for a way to get my foot in the door anywhere I could, I devoured every book on trading, stocks, investing, options, brokering, and economics. None of them really delivered the hard truths along with the information and knowledge base that every investor and trader needs to know.

And then there was the guidance — Fusion-IO now expects the 2013 results to come in at 45-50% topline growth for the year. How many other companies do you own that are growing revenues 50% per year. Yowza.

First, I’m not selling because I do indeed think a bigger break out is more likely than not. There’s been some real momentum to the moves during earnings season and with these stocks brushing up to their 52-week highs, there’s a good chance of fireworks once they get there. I wouldn’t be surprised if it took a couple more weeks and maybe another scary decline of 2-3% in a day or two before the breakout rally comes, but I’d buy more on a decline as I think the set up here into year end is looking very bullish both technically and fundamentally for many of our stocks.

How much faith do you have that you aren’t being screwed on every trade you do by high-speed frequency trading computers that are front-running your every order and glitches in the system like that of Facebook’s first trading day and/or yesterday’s intraday trading snafus?

Over the longer-term, the more opportunities that Wall Street has to front-run your trades and to extract fees out of your capital, the harder it gets to outperform. And the rigging of the trading game has gotten worse in the last few years, with high-frequency front-running (commonly called high-frequency trading) and a lack of prosecution for financial crime and the increasing rigging of the trading game is making it very tough to move your money around and to trade aggressively.

There are still lots and lots of shorts who are staying aggressively short out there and that alone would provide some serious upside break out if they were forced to buy back those shorts into a panic.

About The Cody Word

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com He is the founder of WallStreetAll-Stars.com and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and is on the University of New Mexico Alumni Board. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. Cody, a former hedge fund manager, and his stock picks and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.