Wednesday, February 3, 2010

Bookkeeping: Cutting Back a Few More Long Positions

I am cutting back on these names for identical reasons in all situations.  Stocks that had blown through support and now have made their way back to a resistance area or very close; identical set up as we see in the major indexes.  I will go with the same concept as with the indexes - if they jump back over these obvious resistance areas I will pay up a bit to buy at higher prices, but this will offer us stronger charts.  And very easy stop loss locations in case the market and/or stocks fall right back down.

By doing this we are not selling into the "panic" or lemming rush, and are getting better prices - although these are all at some sort of moderate losses.  If anything these charts are set up for low risk short side entries - but for now I am simply cutting exposure since everything seems to be hostage to the general market yet again.  If the market is "happy" with the labor report Friday I assume almost every stock in the country will rally en masse, and vice versa.  Student body left trading is alive and well.

Sold off another 75% of Brazilian chemical maker Braskem (BAK)

Sold off 50% of recently started F5 Networks (FFIV)

Sold 60% of Market Vectors Brazil Small Cap (BRF)


Our only 4 material long positions are stocks that have held up (on a relative basis) like champs - but stop losses are ready for all of them in case we begin a new leg down.  DragonWave (DRWI), Assured Guaranty (AGO), Atheros Communications (ATHR) and EnerNOC (ENOC).

Long all named mentioned in fund; no personal position

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