TraderWise

Private equity firm Blackstone Group (BX) had a rough few sessions last week, showing weakness even as the market rallied in the first 3 days of Thanksgiving week.  With some support lines broken, I am going to cut back the position 80%, take some minor losses and wait for better action.

I am going to do an awful thing and actually sell some long exposure - hang me in effigy. Selling 1/3rd of our 2%ish position in Blackstone Group (BX). We've enjoyed a 25% rally in 2 weeks in this name. It is breaking out nicely but I want to lock in some profits off a nice run. Continue to like this name and would like to buy back the position on a ... well... they used to call it a selloff. We just added to this stock a week ago at $13... and in a heartbeat we're at $15.

I am adding a smallish exposure back to our existing DragonWave (DRWI) position as it's the 2nd stock we own on the long side of the portfolio to regain all key moving averages.  That said, it's a go it slow approach and this purchase is only about 0.7% of the fund.  It will be stopped out (again) on a break below recent lows.

This trade worked out nicely for us, if this is the not the "big one" ...

Friday we sold half our CNinsurance (CSIG) over $24 as we eyed a potential "double top" (bearish). One session later the stock has given back nearly 9% so we can get our holding back in full (plus I added a bit more exposure since we've sold so much elsewhere)

Here was the chart Friday

The market continues to take us out of position after position... a limit order to stop out of 55% of the position in Rackspace Hosting (RAX) executed this morning below our target of $20.40.  We continue to see stock after stock break below its 50 day moving average even as the indexes sort of hold up.... quickly running out of material long positions.

Trick or Treat Bulls?!

I think this must be the 3rd intraday reversal to the downside in I believe 6 sessions; it started a week ago Thursday.  We've now returned to the 1047 level, and the 50 day.  Remember we said, anything between 1047 and 1070 was white noise to us... now it gets interesting if we crash through this same support twice in 3 sessions.

Fascinating session - I am enjoying this massive cash hoard as this action unfolds.

Last Thursday, we cut back E-House Holdings (EJ) by 60% as it triggered a stop loss in the $20.30s and broke support, under the 50 day moving average. This took us down from a 1.6% exposure to 0.6%.  The chart  looked like this on Thursday:

If the market melts up, I anticipate I will be right back in Brazilian homebuilder Gafisa (GFA) but for now as the stock breaks the 50 day moving average... and has been acting lost in the woods of late I am stopping out of the majority of the position (85%) in the $32.30 area; our average cost here is $32.45 so negligble fallout.

With the caveat that time is short, with an earnings report next week (the 25th) I am adding a 1% exposure in the low $35s to Atheros Communication (ATHR) as this is my favorite chart set up - a chart in excellent uptrend which has pulled back slowly to a first level support level. (20 day moving average)