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December 18, 2007


Update on Box Ideas MAN and MSCC

We’ve already talked about the idea from last Monday, MAN — it dropped hard again today and is very rapidly approaching the upper bound of Target #1. I thank the folks who made comments on how best to manage this open position.


Click to enlarge (MAN Daily)

Microsemi (MSCC) was an idea sent out for last Tuesday:

Short MSCC below 23.64
Protective Stop above 24.12
Target #1: 20.53 to 20.93
Target #2: 18.53 to 18.90
Target #3: 14.71 to 15.00


Click to enlarge (MSCC Daily)

For no good reason, in some ways I find this a more exciting trade than MAN. The initial risk was around 50 cents and it’s already nearly 250 cents in the green (~5x initial risk). Top target of 20.93 is within spitting distance. I hope some of my many readers caught this big winner.

This entry was posted on Tuesday, December 18th, 2007 at 11:34 am (utc+8) and is filed under Trading and Investing.

4 Responses to “Update on Box Ideas MAN and MSCC”

  1. Peter said:
    December 18th, 2007 at 10:24 pm

    look like this is about selling rallies (and buying pullbacks) in the end ??

  2. C. Maoxian said:
    December 18th, 2007 at 10:36 pm

    Peter: Yes, indeed, because in the end that’s all trading ever is. As the great Linda Raschke (and she really is great) put it:

    “The market’s either retracing or testing — that’s about all there is to it.”

  3. Peter said:
    December 19th, 2007 at 12:11 am

    yeah…but how come that i find myself always buying rallies and selling pullbacks…. (-:

  4. C. Maoxian said:
    December 20th, 2007 at 9:51 am

    Peter: Because your wonderful human nature makes you (and everyone else) that way … nothing a little behavioral/cognitive therapy can’t fix. :-)

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