Thursday, October 7, 2010

Bookkeeping: Closing Mercadolibre (MELI)

Since I still have a small profit (versus a much larger one just a week ago) I did not even realize the damage done to Mercadolibre (MELI) in the past week.  I guess as long as Apple (AAPL) goes up the NASDAQ will hold up, but we are seeing some quite serious damage under the surface since Oct 1st and the quarter end 'window dressing' is over.  This stock is now identical to VMWare (VMW) and Maidenform Brands (MFB) in that we have a busted chart - of course in a continued melt up the stock can rally, but now faces a lot more resistance as any rallies will be considered dead cat bounces in these eyes, until proven otherwise.  Fine for the daytrader section of the market, but for intermediate term holding trading types - we now have issues.

Since this has broken down, I am forced to close out the last 1% exposure with a 1% gain.  The stock is now in no man's land on the chart.  Some support at $62, but resistance at $68.

Very curious to see so many stocks on my watch lists taking such body blows the past week, but the index flat.  The past few days was a rotation into energy, today its retailers - not groups I have much exposure to, so definitely out of step with the quick movements in and out of sectors by HAL9000 right now.

No position


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