Thursday, May 10, 2007

Collective2: CVO

Finally, a day of selling hits the markets. I will be watching for Richard Lehman's updates to see what price channels are forming. Unfortunately, it was the Russell 2000 which received the biggest blow, destroying much of the work bulls had done to set the index up for a potential breakout.

The Trade Ideas scan just crossed the bearish side of the fence - not too bad considering the level selling reflected in the indices; the top 8 picks came in at 11 minutes (I consider anything above 10 minutes for this indicator as bearish), while there were only 3 picks on the "20-appearance list": Post Properties (PPS), Vicon Industries (VII), and ProAssurance group (PRA)

The selling resulted in another exited position for my Collective2 portfolio, leaving just two positions in play (15% equity: 85% cash). Cenveo (CVO) cut below tight support derived from April's tight trading; this resulted in the exit of a 400 share position for a -$227 loss (-2%).

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