Monday, September 13, 2010

Bookkeeping: Reshorting Texas Instruments (TXN) that was Covered Friday

TweetThis
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


x

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com