Monday, November 15, 2010

Bookkeeping: Closing VMWare (VMW)

With the action Friday, we have to run a bit of a tighter ship now and keep an eagle eye on any goofy stock action.  Rather than giving a benefit of a doubt, I am going to be more rigid on cutting potential reversals if the charts begin to act bad.   Many of the stocks I have been buying the past few weeks are not 'leaders' since most of the leaders are up 50-60% in 2+ months with no breaks, so when dealing with these lagging type of stocks, I have a lot less leeway.

I was hoping VMWare (VMW) was ready to break out last week when I bought it as it cleared back over the 50 day moving average, and things looked dandy until Friday.  This morning's action is not the type I like to see, and rather than waiting to see how the stock closes I am taking my 2% loss and putting that capital back to cash.

No position


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