September 07, 2014

Entering long $CMG (Chipotle) and $NKE (Nike)

I'm entering two new positions tomorrow.  The first is $NKE which had a big breakout on Friday.  It's gotten a lot of attention, but I like it and the stop isn't too far down.

The second is $CMG.  The stop on this is very close based on the 40-day SMA, which has worked fairly well in the past.

While typically you want to position size to keep risk even in dollar terms between entries, you also must account for moves that invalidate your original risk assumptions.  Because of this, I will lower my risk with $CMG because I believe it has the potential to make large sudden moves and the win probability gets lower the closer an initial stop. 

I'm also lower my holdings in $TTWO and $TSLA due to current risk.  To have them fall now I would be giving up three times as much as any other position outside of the dollar, which I am using for a hedge.

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