Monday, June 15, 2009

Bookkeeping: Starting Position in Bucyrus (BUCY)

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A limit order I've had in for about a week for Bucyrus (BUCY) hit this morning at $28.70 which is the 20 day moving average. I like this set up to begin a position because the 200 day moving average (which was the day's low) is right below at $27.70. (stockcharts shows the 200 day lower than my other chart sources) If this is just one of those very short term falls we've seen for weeks, I've snagged a solid play on the (crowded) reflation thesis. If this is the beginning of a more dramatic move down I have my stop loss to get out at $27.00 and limit my losses at 6%. I started today with a 2.7% position.

We've owned Joy Global (JOYG) any number of occassions but never Bucyrus.

Bucyrus International, Inc. engages in the design and manufacture of mining equipment for the extraction of coal, copper, oil sands, iron ore, and other minerals in mining centers worldwide.

Until proven otherwise the trend is still intact, and we sit now at our 20 day moving average which has served as our support for over 3 months now. But if we close below today, the bulls case begins to break down and we'll focus back on the short side. This is the first real test to the downside of the ascending channel in the market in 3 weeks.

Long Bucyrus in fund; no personal position

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