Tuesday, October 20, 2009

Bookkeeping: Adding Back some Atheros Communciations (ATHR), Cutting Much of Myriad Genetics (MYGN)

As mentioned earlier this morning we wanted to get back into Atheros Communications (ATHR) in a more material way now that earnings are out of the way and we don't have earnings risk for the next 90 days. I added about a 0.8% exposure around $28; I want to be a buyer over $29 as that would be a new high and a potential breakout... waiting on that. I will also place a limit down there in the low/mid $26s to see if we can snap some shares cheaper in case the market falters for more than 3 hours.

I cut back the majority of Myriad Genetics (MYGN) as it runs into resistance, we will be down to a 0.3%ish type of exposure after this morning's sales just under $27. Of our long positions less than a handful are below the 50 day moving average, and this is one of them - which we knew going in and were ok with since we like the story (as long as they don't fumble in their earnings report). In this type of chart I'd like to be a buyer over the 50 day moving average (preferable) i.e. higher >$28; OR at "some point" lower but judging where to place an order is more difficult if that is the direction of the stock. I suppose mid $25s is an option, but would actually prefer the >$28 scenario since it would mean the stock has a good chance to run without hindrance.

As a hedging strategy one could short Myriad here but its been reinforced to be by Larry S and Ben B that shorting is unAmerican and they will hammer me if I dare.

Long both names mentioned in fund; no personal position

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