Thursday, November 8, 2007

Two sells at close, PCU and SPWR

Checking on the SKF trade, it now shows I'm out of the sync with the markets after a good three months. A sure way to know when things are no longer going your way is when you lose money. We're still long although I'm wondering if I'll get prematurely stopped out before it takes another leg higher.

Because I'm out of sync, I'm selling the full positions on PCU and SPWR.

For PCU, I don't like that the 10, 20, and 30 day moving EMA's have rolled over to the downside. I would rather sell and enjoy the profit.

SPWR has traced with Livermore described as "beware the high volume reversal" , where a stock hits a new high but closes below the low of the previous day on higher volume. It means the stock is moving from strong hands (institutions) to weak hands (dumb money), and I don't want to be around when this thing decides to implode as everyone seems to want FSLR versus this one.

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