A week ago, we were stopped out of the majority of our Fuel Systems Solutions (FSYS) as support was broken - today we are going to close out the last of the position (0.2% exposure) as I am doing some fine tuning to the portfolio. The stock bounced back, in dead cat fashion, to hang by its fingernails to the 50 day moving average Monday-Thursday of this week... but appears to have given up the ghost today.
The gap from early November 2009 now comes into play, the bottom of which is around $35 (or a bit below). The 200 day moving average is down at $33.50 as well, so the $34s would seem like a potential area to go long again if and when. (if the stock *did* fall down there, the rest of the chart would degrade however) One could argue it's an obvious short but this type of stock can move 15% in a day, so it's a relatively risky proposition even though the chart screams short rather than long. I've chosen to just sit it out and place a limit purchase order far lower, as I like the fundamentals.
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