September 05, 2014

Exiting $F (Ford), $HYLD Recovers

Today's action was encouraging.  In my mind, I always think of Friday's as how investors want to be positioned for the biggest possible impact as days pass without the ability to further revise, hedge, or leverage.  There's likely no real evidence to support this mindset, but let me indulge.

Ford has been disappointing for a while, and while there's a case to be made that it's still hanging onto a trendline, there's also a case to be made against toying with such close stops because when they break they often break hard.  $F has breached my SMA stop, and so I will exit it at Monday's open.

In $HYLD I saw the strength at which it recently recovered from a sizable dip.  If that strength continued, I would have two wins.  The first is a sizable yield, the second through eventual capital gain.  However, after entering it has become much weaker, and was below my stop for much of the day.  It's now 0.2% above, so it gets to stay.

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