CSCO and CVTX Updates, plus AAPL Epilogue (24 Aug 2006)

August 24, 2006 at 9:22 pm by Will

Update on the CSCO (Cisco Systems) trade:

CSCO

Yesterday (8/23) printed an inside bar (lower high and higher low than the day before). I generally don’t mess with my stops on inside-bar days. However, today did print a higher high of 21.42. Based on today’s action, I’m going to bump the stop. Today’s high (21.42) minus the previous stop (20.70) is 72 cents. [Notice how close that figure is to the last time I moved the stop (0.72 vs. 0.79)… that’s not uncommon.] I’ll take 20% of that (14 cents), add it to the prior stop and get a new figure of 20.84. I’m going to round that down to the nearest nickel, or 20.80. Why? Just because it’s my trade, my stop, and I think I’ll give it a little more wiggle room. Bing, bang, boom.

 

Update on the CVTX (CV Therapeutics) trade:

CVTX

Due to my being busy at work, with the “chillens,” and working on the *&%^!! coding behind this site, I made no updates yesterday (8/23). Yesterday’s high of 11.07 warranted a bump of the initial stop via the dummyspots bread and butter trailing stop method:

  • New high (11.07) minus prior stop (9.99) times about 20% equals 22 cents, which I’ll add to the prior stop.

  • This gives a new stop of 10.21, from which I’ve just gotta round. I’ll round this one all the way up to 10.30, because I consider any failure of the 10.37 breakout point to be a sign of weakness.

Today’s (8/24) bar was an inside bar, so I’ll use my normal practice of not moving the stop for that one.

 

Followup on AAPL (Apple Computer) Trade:

AAPL

Since this one reversed on me the first day, I ate my entire initial risk (tah-dah! That’s -1R for you “R” fans) of 0.55/share. C’est trading, mon frere. Apple is still set for a nice move. I would shift to watching the 8/3/06 high of 70.0000000 as the level for a potential long breakout, and the low of the past few days’ sideways range (66.15 on 8/21) as a potential short. I say “potential” because I may or may not take a trade, depending on the price action and where it allows me to set my initial stop. Stop too wide, no trade. Nice tight stop, I’m back in the saddle. But that’ll be a different trade. Stick a fork in this one and flip it over, ’cause it’s done.

Cheers!

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