The stock broke below its 50 day moving average back in the beginning of August, at which time the stock was in the mid $40s. This began a 2 month swoon, which culminated in a break of the 200 day moving average below $31 in late September. Generally when a stock breaks that important level you get out of it. I never had a huge position in this topsy turvey name, but the move from that September low has been tremendous. My thought from looking back at the chart is this is a very small cap name and if even 1 major institution wanted out of the stock it could of put pressure on the stock price - once the selling let up, the stock was free to return to a 'normalized' level.
So I am exiting with a small gain. The volatility in the name has been amazing - if the stock pulls back to the low $40s, or about 15% down from here I will re-enter it, but I cannot get a handle on this name technically and my position now is so small ($4000) that even if it goes another 30% from here, it won't have much of an effect on overall fund performance. While pure technical traders would actually be buying a chart like this, I prefer to buy strong charts that have pulled back, not chase - hence why I am taking the opposite tact to a pure momentum trader.
No position
