Friday, October 27, 2006

Collective2: TMX out

First sign of damage in the markets; important to watch is channel support across the various indices. There have been a number of false breakouts over the last couple of days for individual stocks, these should be sold - no questions asked. One such stock to close at new highs and then reverse was Telefonos de Mexico (TMX). After yesterday's close at a new reaction high I raised the stop to the highest reaction low (set last week). The stock hit the stop intraday, even though it finished the day a shade above such support. This closed the 400 share lot for a +$744 profit.

The stock featured as a free Breakout play for September 29th opened at $25.42, following an earlier feature for my newsletter Subscribers, July 19th [$], opened at $22.12. It was added to the Collective2 portfolio at $24.58 on September 20th.

Three positions remain in the Collective2 portfolio. I see no reason to be adding new positions at this time.