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Former Short Position - AZRInitial Cover-Stop was established off the hilltop resistance points which were above the 30wk moving average (Risk Corridor = 21.7%). The next valley-bottom occurred at 8/2/02 as confirmed upon the third subsequent increase in closing price on 9/6/02. The next hilltop occurred on 9/6/02 as confirmed upon third subsequent decrease in closing price on 10/11/02. Since the 9/6 hilltop was below the 30wk moving average, we adjusted the Cover-Stop to the 30wk level at $18. From that point forward, Cover-Stops are adjusted downward in $1 increments in tandem with the 30wk. 3/23/03: While the thought of closing out half of a position over a one penny stop violation may make one cringe, we smile as we realize we captured a 23.2% ROI on that portion of the position. Half of our original position is still alive. 5/4/03: Closing in excess of the Cover-Stop means it is time to reduce risk of losing profit. This transaction provides an 11.8% ROI, bringing the cumulative ROI on this original Short-sell to 18.4%. One-quarter of our original position is still alive. 5/11/03: Three-strikes and YOU'RE OUT!!! Third and final Cover-Stop violation. 7.2% ROI on this transaction. 15.4% ROI overall for the entire holding period. Configuration told us when to get in -- Cover-Stops told us when to get out.
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