Tuesday, August 31, 2010

Bookkeeping: Taking More Profits on Riverbed Technology (RVBD)

Since being reintroduced into the portfolio August 12th on a limit order when Riverbed Technology (RVBD) filled its "gap", the stock has been on fire.  It is acting as if the S&P 500 is up 5-7% for the month of August, rather than down by that amount.  Within 48 hours of purchase I had a 8% gain on my purchase so I quickly took profits thinking with the market in trouble, the gains could evaporate.  Instead it has lived in a vacuum.  Now the stock is up 23% from where I bought just a few short weeks ago, so I am going to cut the position by half again.   Technically there is no reason to sell, as a very bullish 'flag' formation is apparent.  But I am going to take my profits and I'll let the rest ride from here - if the S&P 500 were in more attractive condition I'd most likely be adding to the position rather than subtracting.

Long Riverbed Technology in fund; no personal position

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