Bookkeeping: Sequenom (SQNM) Limit Order Hits

I've been trading around a core position in Sequenom (SQNM) of late....

I had cut this name back on the 18th [Dec 18: Bookkeeping - Cutting Sequenom] after making 30% in 5 days (just under $22) I placed a limit order to try to buy it near the 50 day moving average....

Hence I bought it back on the 30th as it hit its 50 day moving average ($18.50) - a limit order was triggered although it fell to the upper $17s.

As I wrote on the 31st:

I have a limit order to sell much of it at $21.20 as I wrote yesterday.

So today that order hit and I am out of most of the position at the price point above.

The reason I used this level (and sold in the $21s the first time around) was this was a previous high and I expected a failure. A "double top" was formed. The stock hit that level on the 18th and then immediately fell back. So I was able to get back in at a support level. I just tried to repeat the trade - which was also successful.

However, now we have a quandary... I wrote on the 31st

Going forward the strategy I employ on a stock like this will be to repeat what I did above: sell the "edge" part of the position in the lower $21s (which was the recent high) and if the stock bursts through that recent high, this should signal a new leg higher so we'll rebuy (somewhere near $22). If it fails at that level (lower $21s), we'll keep repeating what we just did (rebuy the edge position lower and keep trading it) So far so good.

The stock has now cleared the $22 which means a new leg up could be upon us (the double top has now been cleared) - this type of pattern usually brings the technical trading daytraders en masse. I'll give this a day or so and assess - strong stocks are going to prove you wrong eventually and at some point just keep running... so when they prove you wrong, you eventually have to pay up a bit to get back in.

But for now my limit order exited most of my position, taking me down from a 2.8% stake to 0.3% by selling in the $21.20s. (much of which was bought on Dec 30th @ $18.50) I am antsy to not have a light exposure to this stock since it's one of my favorites.

EDIT 12:45 PM - if the stock holds $23 by end of day, I'll probably buy back some of my position around 4 PM.

Long Sequenom in fund and personal account