Sunday, December 12, 2010

My Cirrus Logic Trade Result

Date Bought: Nov 19, 2010
Price: $13.75
Quantity: 8,000
Reason Bought: All 3 Important Technical Indicators shown a buy signal. MACD remain at the bottom (the blue line has cross over to the red line) it means that there is much more room for the CRUS to go higher. However, I am not really comfortable with the bollinger band cause it was at the upper of the side which shows almost over bought.
Mistake: Should have buy earlier at $13.40, but hesitated, so ask my wife to cancel for me while I attended the ARFF event. Shouldn't have attend the fuck up event. But the beer was good. :)
Lesson to be learned: Should not have hesitated, should have buy for the long term.


Date Sold: Nov 22, 2010
Price: $15.70
Quantity: 8,000
Reason Sold: I sold at this price because:
1) I am a bit worry that the price has jump up too fast and it might consolidate back to $14 level to fill back the gap. However, I was wrong at this point in time because obviously the run up is to strong for Crus to come back down to fill the gap.
2) The stochastic is already at the upper end of the side, I thought that it was ripe for some profit taking, but truly it was not the case.
3) I need to channel my fund to a Cisco which I find it very attractive, after the 16% gap down.
Lesson to be learned: Eventhough, I have make $15K on this transaction, I was not really satisfied cause if I think Crus is a very good share either for long or short term. As long as the demand for Apple products is strong. I believe Crus will continue to outperform in the neart future. I hope that Crus will consolidate within these few weeks cause I would like to enter again, however, once entered, I will stick for a long term which is at least 3 months down the road.

Profit Loss: $15,600

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