I bought GE January 5th late in the uptrend because I didn’t have any monies when the signal was fired. On January 10th, it stopped climbing and entered into a consolidation or Bullflag pattern. I decided Friday to take my little tiny profit, .95% or $9, sell into strength of the market, and invest in a stock that was breaking out. I also will keep GE in my watch list to see if it breaks out to the upside. If it does, I will re-purchase and ride the climb.
This is the replacement for GE. You will see that it was in the same Bull Flag that GE was in but Friday broke out. how can you not take this? I’m in at $16.71 with a $16.05 stop loss. This is a very slow moving stock that I have already made money on, so let’s hope that this is the next leg up.
Home Depot is another stock that was stuck in a Bull Flag and was not doing anything for me lately. I had a very nice gain in HD, so since I had another stock breaking out, I took my profit and invested somewhere else. I held HD for 48 days and made a 10% profit. I will also keep HD close and on a watch for a breakout to the upside.
LULU is my replacement for Home Depot. This stock actually broke out a few days back but I just didn’t feel at the time it was the right time to buy. So I’m about 8 days behind it but I still feel comfortable because my stop loss is tight just in case. LULU doesn’t report earnings until 3/15/12 so maybe I will get a little move before that point and I will not get crushed in case they miss. Either way I will ride the trend.
Still making money. Let’s see what happens we things turn nasty. This is where I know personally I need the most work. Shorting stocks is not fun and I do not have as much confidence playing that side, Yet!