SUF Update

Posted by downtowntrader | 1/23/2006 08:30:00 PM | 0 comments »

Well SUF took a pretty nasty haircut today. I didn't expect it to fall this hard on a negative article of all things. This reacted like it was being investigated by the SEC or like a biotech whose drug had killed someone. My normal strategy when a stock gaps down this severely is to wait 5 minutes and see if it will reverse. I treated SUF differently for a couple reasons. First, I had locked in enough profits in SUF earlier that my core position is comprised purely of profits. Second, I thought this reaction was a little overblown and my weekly chart was still holding up. I ended up selling half at 13.55 when it made a new 30 minute low. I bought them back and then some just under 10 as I expected 10 to hold based on my daily and weekly chart. It almost retraced a full 61.8% which also coincides with two trendlines I have drawn. It held all the trendlines and is near 10 week average as well. I sold some traders at $12.30 when the mid day rally finally fell apart. All in all, I can't be disappointed as I was able to recoup some losses and actually lowered my average cost on my existing shares, but it does suck to have a stock move 47% down against you. I will probably exit if it violates my trendlines though. Hopefully some of you didn't get hurt too bad with this move.