Thursday, October 15, 2009

Equity Plays - 10.15.09 - SGP and C


I would Expect C to be a long core position. After reading about my colleagues fundamental analysis of C. The long term technical picture is confirmed. C has great potential for long term growth from a valuations and technical standpoint. Today's move just reflect, as I wrote yesterday, a correction from over-exuberance. This may give an opportunity to re-up if 50 RSI support holds.

Be prepared to add in if you see those higher lows. I know I will.



I updated my risk management on SGP considering my sizable position. I set to take profits roughly around 1 ATR below current prices. Due to the high probability of noise my order will most likely get filled. Which is fine, since I will re-up (re-pyramid) on the pullback as SGP is due for a slight correction.

I expect SGP to trade overbought into the next week due to the volume confirmation. It seems that SGP has a bit more room to the upside after its due correction before hitting significant technical resistance. (31? 32? ... anyone?)

Again watch for those higher lows!





    my previous post on SGP

  2. Love your thinking on Citi. I hope support does not hold at 50. I know you are locked in a position, but I would definitely like to see C fall closer to $4.10-4.15 before buying in.
    I definitely see an upside of 31-32 on SGP. You are going to have to school me on pyramiding analysis.


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