Friday, October 2, 2009

Bookkeeping: Covering Eaton (ETN) Short

TweetThis
There is still a gap in Eaton's (ETN) chart in the mid $40s, and frankly this company reported one of the worst earnings reports last quarter of any I follow; but mutual funds are piling in this name as an early cycle recovery stock.

With the stock pulling back to its 50 day moving average, I am going to limit the damage here and exit with a 5% loss. This was a 2% exposure. Much like Caterpillar (CAT) and PPG Industries (PPG) - until managers who follow the "playbook" give up the ghost on recovery - these type of names will be hard to take down. I expect all these stocks levitating on Kool Aid to take a hit at once.

No position


Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com