Friday, I covered half of the Texas Instruments (TXN) position around $23.33 to lock in a very quick 2.5% gain. In retrospect that was an excellent trade as the stock bottomed out 8 cents later and has rallied about a dollar in under a day. The stock has jumped over the 200 day moving average and is at the same level that stopped it a week ago, the 50 day moving average. Hence I can reshort the half position I took off (about 1.7% exposure) with a very obvious stop loss area not far away.
I am reshorting in the $24.30s area and will exit the entire position on a move over $24.60. Otherwise I hope - if the market will ever go down again - to ride this down for a second profit within a week. My cost basis should rise to $24.15 or so.
The market, after gapping and running over the 50 day simple moving average is now using it as intraday support - so S&P 1116 is the key level. As long as that holds bulls still have the edge. Ironically, due to a bevy of profit taking the past 3 sessions, I am net short for the first time in a long time... even as bulls dominate.
Short Texas Instruments in fund; no personal position
Monday, September 13, 2010
Bookkeeping: Reshorting Texas Instruments (TXN) that was Covered Friday
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