Thursday, March 12, 2009

Bookkeeping: Restarting Mastercard (MA)

I am going back to an old position today in Mastercard (MA) - I had been waiting for this stock to fill a gap in the mid $140s which it did in the past week. Yesterday it reversed nicely and hit the 50 day moving average (from below) but did not break through (around $148). Today it is breaking back north of that resistance area nicely and in the low $150s, so from a technical perspective in a "normal" market these are all things we'd love to see.

In this market? It means little - but we'll give it the college try... starting a 1.5% stake in the $153 area. Again, let me say almost every stock is a hostage to the indexes - so at this time it is sort of immaterial what individual stocks you own - if the charts on the indexes improve I expect a lot of money to come in to take almost everything up. And the opposite if we break back down. If Mastercard falls back below $148 on a closing basis we'll retrench and cut back on the position. If the stock gets north of $170 it has a lot of headroom to run but we take it hour by hour around here lately... can't look past out your nose.

Mastercard is one of my favorite companies in terms of business fundamentals so if I'm going to add some long exposure, this is a name to try it with. But everything lies in the market with "student body left" type of trading we've been stuck with for the better part of 9 months.... the indexes rule the individual stocks.

Long Mastercard in fund; no personal position

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