Thursday, January 13, 2011

My Baby Supervalu Turns Ugly

(Click the Above Image to Enlarge)

Date Bought: Dec 22, 2010
Price: $9.16
Quantity: 8,100
Reason Bought: 
1) All technical indicators point to a buy.
2) An upward gap up candlestick points to a strong push upward.
3) Stable fundamental Earning Per Share of around $0.30 each quarter
Date Sold: Jan 10, 2011
Price: $8.50
Quantity: 8,100
Reason Sold: All technical indicators point to a sell. It also broke the important support at $8.70. The next day after I have sold, the stock tumble more than 11% after Supervalu announces a poor quarterly earning. I believe that some people have already gotten the inside news and dump this stock earlier on.
Profit/Loss: -$5,200
Mistake: Under my latest post "Supervalu approaching the great resistance", I have noticed that Supervalu is losing the upward momentum. I have overlook the seriousness of this resistance. I admit I am also a little greedy hoping for more gain.

Even though I have made a serious mistake on this trade, I am also glad that I have took important step which is to cut my losses. If I have hold on to this stock, I would have lost more than $15K or more by now. As for the future direction of this stock, I would say that the downward move for this stock continues to be very strong and unstoppable.

Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in The Market Oracle Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...