Security in MFE

Jun 29th, 2009 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs
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MFE made an all-time high today.  GMan was long seemingly all day.  And we were deciding whether to add some above 42 and then hold.  Let’s discuss.

We did buy more since the stock was so strong.  This was an easy decision.  And then we had to decide whether to sell when it slowed above 42.  We held.

1) MFE moved easily above 42.  There was no selling every penny that we see with a weaker stock.

2) MFE is at an all-time high so we give these stocks more room.

3) MFE was in an intraday uptrend so we are more likely to hold such stocks.

4) SPY broke below 92.60, a support level in the afternoon, but it was hanging in there.

5) MFE had been consolidating near this level since 12PM so this gave us more confidence to hold.

So as I write we are still long.  We will add some more tomorrow if MFE shows strength above 42.10 and then 42.50.  A seller below 41.85 will force us to reevaluate our position.

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MFE 06-29-09

MFE All-time 06-29-09

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  • http://www.wallstcheatsheet.com Damien Hoffman

    1) How do you deal with a gap against an overnight position which breaks your stop?

    2) Do you favor 52-week and all-time high stocks? I have been becoming more and more of a fan since they tend to breakout with lots of momentum and mitigate risk (i.e., I end up in a winning position very quickly when a buy/sell stop limit is triggered at a critical level).

    Thanks, Mike!

  • http://www.wallstcheatsheet.com Damien Hoffman

    1) How do you deal with a gap against an overnight position which breaks your stop?

    2) Do you favor 52-week and all-time high stocks? I have been becoming more and more of a fan since they tend to breakout with lots of momentum and mitigate risk (i.e., I end up in a winning position very quickly when a buy/sell stop limit is triggered at a critical level).

    Thanks, Mike!

  • Bella

    Damien,

    Will answer in my blog today. Great question. Lots to discuss.

    Bella

  • Bella

    Damien,

    Will answer in my blog today. Great question. Lots to discuss.

    Bella