Sunday, April 13, 2014


MOS is one of those trades that show nice potential at points but never quite get it done.  I was looking for a reversal play and it seemed to have all the elements that I look for -- a vicious down move followed by a long side ways period.

Entered 1/10/14 @ $46.64 -- Nothing special about the entry after recovering from Dec's dip MOS recovered and traded sideways.

Exit 4/11/14 @ 47.73 (+.25 dividend) With the dividend a 2.87% return.

Recap: I looked for a longer term play but there were a multiple opportunities to make a bigger profit. I had a big move within 3 days after buying.   I had a small position and a wide stop so  I could play a big move. In retrospect the doji should have been a sign to take profits on 1/2 the position.   I would not be surprised to see Mos  head to $44 based on the state of the market.  At that time it may be worth getting in again if there is a long legged reversal like was seen in January.

My decision to take profits was based less on what was happening in MOS than in the market overall.  I wanted to reduce exposure to the market and take a profit before it went red.

No comments:

Post a Comment