Friday, December 18, 2009

Bookkeeping: Beginning Position in Braskem (BAK)

Braskem (BAK), the Brazilian chemical maker, highlighted earlier in the month [Dec 9, 2009: Braskem - Brazilian Chemical Maker] is our newest addition.  The stock was in full "break out" mode when I wrote about it, which I prefer not to chase (even though that's been the preferred money making strategy of late).  Yesterday and today we see the stock coming back to hit a supporting moving average which is a place I am more comfortable starting or adding to a position.  By doing so I have a clearly defined place to exit if the trade does not work.  I will begin a position in the name in the $15.40s with a tight stop loss, in the $14.80s. 

Brazil, as a whole, has had a rough week - down 4% as the "dollar carry" trade blows up, ruining HAL9000s precious strategy.

Long Braskem in fund; no personal position

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