Wednesday, February 17, 2010

Bookkeeping: Selling 1/2 of Wyndham Worldwide (WYN)

I am selling 1/2 of the Wyndham Worldwide (WYN) position, almost all of which was rebought on February 5th @ $20.60 area when a limit buy order was hit.  After that purchase I put a limit sell order at $23.30 which would be near highs from January; the stock looked ready to go there but despite a big rally yesterday the stock seemed stalled.  Being a bit impatient I am going to just move the sale from a limit order to a market order for 50 cents less, in the low $22.80s.  That still generates a nice 10.5% gain in under 2 weeks; not as exciting as some of these Chinese stocks who lose or gain 10.5% in 1 session but the stock has been priceless the past year in working wonderfully with technical analysis; thus allowing us to trade around a core position in a very methodical manner. More "exciting" stocks have a bad habit of quite random movements that cause us many more issues.

I will rebuy this half position on either (a) a pullback  - something in the lower $21s would be nice or (b) a move over mid January highs of $23.50, as that should signify a potential new leg up. Today's sale will drop exposure from 1.8% of portfolio to 0.9%.

As for the general market, every computer waits poised to jump in over S&P 1100.  Please note that YESTERDAY's premarket nonsense caused yet another gap in the chart - this epic rally has been born in premarkets so we have new "gaps" to fill almost every month.  We just filled 2 old gaps in this most recent selloff, and within days a new gap is created - the magic of premarket futures buying.  This fap is around S&P 1078; so that could fill today, tomorrow, in 3 weeks, or 3 months.  It will happen eventually.

Long Wyndham Worldwide in fund; no personal position

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