Well, the new papermoney portfolio just took a swing through stop central and unloaded quite a few positions, and with some triggered orders I added a few more while I was at it. Time will tell if the additions do anything good for the portfolio, however I’m getting the sinking feeling in my gut that I am chasing losers here. As a relatively inexperienced individual equities trader, I’m getting the feeling that I could be chasing my tail with WMS. I’ll be working some fairly aggressive stops on that one to protect my backside.
FUQI
Well, this is an interesting company and an issue I was hoping to hold on to for a longer period of time. Unfortunately, I might have been a bit late to the party and I think it is going to cost me a bit of cash. I remain short my Nov Calls and will monitor the underlying price to manage risk as is needed. My stop was triggered for 300 shares at 24.86. After taking a longer look at the chat for FUQI, it is fairly obvious that this issue was showing signs of weakness when I bought it. Oh well, live and learn.
WMS
I’m a glutton for punishment. This is an issue that I may regret owning soon enough. Take a look at the chart and you can see why. After the earnings announcement, WMS fell through my first 100 share stop at 44.79 and I closed out, then I bought 500 shares on a GTC order from a while back at 43.00. Currently, this beauty is down to 41.76 a share – and in no mans land. The only good news today was that the move today was on lower volume, but I’m really reaching for straws at this point.
Fundamentally, WMS is a good company in a great industry – casinos. Lets face it, the economy sucks and it isn’t going to get better anytime soon so the sin industries are a good place to be. WMS is a high beta stock (1.86) so I expect this one to move around a bit. My buy order at 43 was well placed when I put it in; today, maybe not so much. I’m going to give this one a little bit of wiggle room to see what happens as things settle down. I’ll set a stop to protect myself just in case just below 40. My real fear with this is that it is working its way back to fill the gap highlighted on the chart. If that happens, I’ll be out well before we get there and I may be a buyer again at those levels.
CLI
This company appears to be a wreck financially, money is moving away from real estate and well, it appears as though it is getting read to break support. Given all of those factors, I’m getting ready to short 500 shares of CLI @ 29.90. If it breaks down, I’ll fill and then sell a bunch of puts at 25 to lock in some additional gains, lower my cost basis and hopefully have this put back to me for a nice little profit.
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