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Jun 22

Exiting Long Hertz ($HTZ), Broadcom ($BRCM), Pier 1 Imports ($PIR)

We had three more equity longs trigger exits at Friday’s close; Hertz ($HTZ), Broadcom ($BRCM), and Pier 1 Imports ($PIR), all of which we will exit at Monday’s open. As of Friday’s close they were +27.6%, -7.4%, -3.5% respectively. These three are another good illustration of the nature of trend following, taking small losses when invalidated, and booking big profits after an uptrend in a winner we’ve ridden for over 4 months finally ends.

Hertz ($HTZ) +27.6%. Original 2/12 entry post here.

We had said for the last few weeks that a close below $24.50-$24.00 would see us exit, and here it is. We love our winners, but we can’t stay loyal to anything but price and trend, when it’s over, it’s over.

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Broadcom ($BRCM) -7.4% (incl 5/28 div $0.11). Original 5/6 entry post here.

$BRCM had initially continued to move higher after breaking out from a long-term consolidation on the weekly chart, but has disappointed since, breaking back below the 40-week and returning to its previous range.

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Pier 1 Imports ($PIR) -3.5%. Original 5/6 entry post here.

$PIR had previously seen several temporary breaks of its 50-day without invalidating its longer term trend so we were always intent on using the $23.39-$23.19 price support as an invalidation. We saw a very marginal break of that on Thursday so gave it the benefit of the doubt, but another high-volume decline Friday made it clear.

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