Wednesday, November 10, 2010

Bookkeeping: Limit Buy Order Hits for Gafisa (GFA), Closing Blackstone Group (BX)

Two transactions this morning...

First, a long standing limit order at "the gap" (from late September) triggered this morning in Brazilian home builder Gafisa (GFA).  A 1.2% exposure was added in the $15.60s.  I have done nothing with this stock since selling the majority of the position 10/4 and 10/7 in the $16.60-$16.70 area.  In retrospect, obviously almost all sales in October were early as the market rampaged week after week, and Gafisa continued to $18ish... within a week of my sale.  But the volatile stock has been range bound since.  Now a month later my limit buy was filled.

I certainly don't love the chart action here, but normally when a stock fills a gap it won't be under wonderful conditions.  On the positive side, the 100 day moving average is right below the stock at this moment, so if this level is broken, I can stop out with minimal losses.  There is another gap in the $13.80s so if this market can ever truly selloff, I would not be surprised to see Gafisa make a run for it - hence my tight stop loss.

Further, I closed Blackstone Group (BX) which is one of the names I was "reaching" for last week in a desperate attempt to find something that had not run 60% in 10 weeks, as I was looking for new long exposure.  There are quite a few other names that have reported earnings since I bought the position, that I am more interested in - so I'd like to redeploy cash into one of those (if they can ever pull back).  The stock is still holding the 20 day moving average so it's still in good shape....I have a 2% realized loss.

Long Gafisa in fund; no personal position


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