Thursday, October 15, 2009

Equity Plays - 10.15.09 - SGP and C

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.


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SGP:



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!


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-Alex
at

3 comments:

  1. Alexander LêOctober 15, 2009 at 3:48 PM

    http://groupanlz.blogspot.com/2009/10/sgp-technical-play-100209.html

    my previous post on SGP

    ReplyDelete
  2. Alexander LêOctober 15, 2009 at 3:51 PM

    Previous Post on SGP <--- click here

    ReplyDelete
  3. P_AmbrusOctober 15, 2009 at 4:44 PM

    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.

    ReplyDelete