We exited $UA and $EBAY this morning as per Friday’s exit signals for returns of +72.3% and -5.9% respectively, and tonight we have four more for tomorrow in $ACT +55.6%, $AAP +11.3%, $PGTI -3.3%, and $TYC -2.6%.
We also came close to exits in $TASR -5.9% which just survives following a very marginal break of a trailing level, and $BKW +20.9% which steadied, and $RAD +1.2% which rallied strongly in the afternoon.
As I’ve explained in previous periods of drawdown, these phases are all part of doing business, in fact it’s what makes sure you stay in business. You don’t fear drawdowns when you have a plan to deal with them. It’s more fun to just ride winners but this part of the process is what makes sure those winners pay for all the losers with room to spare. That’s what makes it a winning system, and losing trades are part of a winning system. Believe me if you think of losing trades as costs to your bottom line you’ll have no hesitation in cutting them, but that will be made much harder for you if you’ve also developed some attachment to a stock or to an idea or theme it represents.
Here are tonight’s exit signals:-
Long $ACT 7/5 +55.6%
Actavis has been in a consistently strong trend since our entry in July. Much like the exit in $UA, we’ve waited for confirmation through the confluence of several indicators and we got that move today to trigger our exit.
Long $AAP 12/4 +11.3% (incl 12/18 div $0.06, 3/19 div $0.06)
A more recent trade having entered in December, $AAP has seen lurches like this before only to recover its footing, but this looks a lot more pronounced with the increase in volume and has breached our trailing stop.
Long $PGTI 1/6 -3.3%
$PGTI gave us what might look like a very marginal break, but we’ve already been generous with this keeping the stop there and not moving up to the 3/24 close following the resurgence from that level, so it’s time to go.
Long $TYC 2/18 -2.6%
Right up to Friday $TYC had been holding up relatively well, in fact it almost looked ready to trigger an add or new entry point, but that all changed with today’s session, slicing through support and triggering a tight trailing stop.