Thursday, April 29, 2010

I Flinched on Wyndham Worldwide (WYN)

Sometimes you are in a zone, sometimes you are not. It appears early to mid spring I get into a lull, since this is 2 years in a row of underperformance in April - hopefully not May too (like last year). That said, I actually was daring to short stocks in late spring 2009 (thinking that huge bounce off March 09 lows "should correct" - laughable in retrospect) whereas Ben and Larry have taught me how fruitless that has become this year. Call me Pavlov's dog.

With that said, old habits die hard. Yesterday as the S&P 500 touched lows of the day, testing Tuesday's intraday lows, I had a buy order in process for Wyndham Worldwide (WYN) as the stock had sold off on earnings about 5%. Since I had sold almost all my position a few weeks earlier, I was looking for a good place to re-enter, and finally the stock had pulled back to near the 50 day moving average. In the $25.20s I had a market order waiting for about a 2.5% allocation. But, I saw the market below the 20 day moving average, and testing the previous days low. Instead of buying, I just left the browser tab open with my proposed purchase, and wrote the piece "Another Retest of Yesterday's Low". My thought was if the S&P 500 broke to new lows, Wyndham would not hold the 50 day moving average and my new purchase would quickly turn into loss. My mistake as shown below... the stock has bounced from $25.20s to $27.60s in 24 hours and is almost at highs of the year. This market punishes you for not acting fast to buy any and all dips.

While only a lost opportunity rather than a loss, it is still frustrating.

Long (a sliver) of Wyndham Worldwide in fund; no personal position


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