Wednesday, April 8, 2009

Bookkeeping: Closing American Express (AXP) Short

I've been watching American Express (AXP) like a hawk the past 4 sessions; each day its intraday low has bounced nicely off the 50 day moving average. This was a bullish development - today the stock is surging and since we are hostages to technical analysis for now, I am going to bite the bullet and cover the last of the short position (we only had about a 0.6% stake left). Frankly, if you ignore the fundamentals and only look at the chart - I'd make a case it is a quite inviting long candidate. I am not going to jump on that bandwagon since I have enough long positions, and I prefer names I can make a case outside of "the government will support it at all costs" but I'll respect the price action and take my chips home.

No position

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