Buying Some Cognizant Tech Today
Jan.26, 2007 in
Specific Discussion of Individual Trades
I don’t know how I missed an entry into Lyondell Chemical (LYO). Must have been looking at my navel lint. Oh, bother. Only the REITs worked for me today, oddly, these were the undersized positions I considered adding to but declined to actually execute. I gave almost all of my gains from yesterday back. I guess we really are in a basing pattern! HAH!
Wow, I’d really like to chase LYO and I have this fear that I’m missing “all those gains!” - which is a sign that I shouldn’t chase it. So I won’t.
I like the action in Cognizant Tech and feel the pullback is a buying opportunity. I will take a position at the open with a market order.
January 26th, 2007 at 7:21 am
One caveat about LYO - two members of the Barrons Roundtable recently pegged this as their stock of choice. This will surely skew the way the stock moves.
January 26th, 2007 at 8:06 am
Yeah, the “Fast Money” guys touted it on TV as well. This certainly made me leery of jumping on it immediately, but the chart was clearly a “buy” by my rules after Wednesday if not Tuesday.
Can’t get them all ….
January 26th, 2007 at 11:32 am
Bill…you use 3xATR as a stop. Do you use your entry price less 3xATR or do you use the latest high of the stock less 3xATR? Curious.
January 26th, 2007 at 12:49 pm
Initially I used 3xATR(14) from close to place a stop line, but nowadays I am a little looser and slower. I found that 3x was a little too tight for my tastes and would stop me out of some moves prematurely, and that a 14-day period was too responsive to temporary conditions, so I moved to 4xATR(45) from the highs of the stock while I’ve been in the position. For an entry, I will usually set the line after I get a fill.
January 28th, 2007 at 10:27 am
When you used 3xATR, you would sell the at the following day open IF the stock CLOSED below the 3xATR. Using 4ATR do you sell if the price touches your stop or must it close below the stop? Thanks.
January 28th, 2007 at 11:37 am
I make a judgment call on that. If and only if I’m nervous about the position, I’ll place a trailing stop order or conditional order with the broker and then it will sell if it touches. Otherwise, I look at my positions when the market is closed and would likely sell the next day, unless there was some extenuating circumstance.