With the market in precarious position there is no room for stocks who don't have the best relative strength. Cirrus Logic (CRUS) has been weakening the past 8-9 sessions and then was kicked in the groin by an analyst downgrade yesterday. With the stock breaking below the 50 day moving average, it is time to depart and I'll take a 12% loss on a 1.3% exposure. Not sure if I will be back in this one as it's basically an Apple proxy play.
With the S&P 500 breaking 1070, I'll have to consider getting back those index shorts again - I was too antsy about an end of day stick save since we've been trained to see them come out of the blue so often the past year and a half. It's like seeing ghosts that might not even be there.
If 1070 can not be recaptured soon, I'd be looking for downside targets of 1040 (lows of May and June) and then eventually 1010.
Friday, August 20, 2010
Bookkeeping: Closing Cirrus Logic (CRUS)
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows