Correction over (did you miss it? It was all of 4 hours) . S&P 1200 here we come. NASDAQ already green - technology stocks reign again.
As I said earlier, I tend to get whipsawed around moving averages with my style so I have no problem jumping right back in if things change. I am going to give Starent Networks (STAR) another try since I believe my stop loss might of been too tight. Intraday after falling to $22.27 it's held on and now bounced back to $23.00. We stopped out at $22.72 this morning. Since the current price is a lot closer to a support line, I am going to make this purchase bigger than the one last Friday and once more stop out if the stock breaks support. But since my entry this time is more advantageous of a price I can give a little more leeway on the stop loss. We still have that gap below $22 that I was hoping would fill but it did not happen today.
So instead of a $24 entry price as we tried last Friday, we are entering at a touch over $23. (this is about 30 cents above where we stopped out this morning). Instead of buying a 1% stake as we did Friday we'll go with a 3% stake since we have a much nearer parachute. I'll use $21.98 this time around and try not to get shaken out as we head to the moon Alice. That would hit us with a 4% loss if the name reverses back down again. If it rallies the behavior around $25 will be important since there is an upside gap ahead.
Since I added about 4% short exposure this morning, I wanted to find some more long exposure to balance it out - this is one candidate for that purpose. The market remains frustrating for any expecting a serious correction as the dip buyers are relentless. Let's see if we have another 3:50 PM special.
Long Starent Networks in fund and personal account