Former Long Position - CYT
Step numbers referenced below are referring to
Tutorial Steps.
If you need help with terminology refer back to that Step of the Tutorial or the
FAQs associated with that Step.
We added this one to the portfolio because we like the looks of both
the Configuration and Action History charts, and it has a nice moderate Risk
Corridor. At the time of purchase, it is our thought that if CYT breaks through $40, the rest is easy.
Action 1) - 5/23/04:
Step #1 - NYSE registers a Stage 3 - Bull Market.
 Step #3 - CYT flashes a Buy Configuration Signal
(click on Configuration
Chart, to the right). We execute the Buy. Initial Sell-Stop is established off the
valley-bottom resistance points which are below the 30wk moving average. Risk
Corridor is a moderate 13.4% (see Action History Chart, below).
Action 2) - 8/8/04:
Step #4 - The hilltop of 7/16/04 is confirmed by the third
subsequent decrease in closing price as of 8/6/04. This hilltop has provided
us forced recognition that the $37+ closes of 5/14/04 and 5/21/04 represented
the most recent valley-bottom. Thus, the adjustment of the Sell-stop level to
$37.
Action 3) - 9/5/04:
Step #4 - A valley-bottom at 8/13/04 is confirmed as the third
subsequent increase in price which occurs as of market close on 9/3/04. Since
the 8/13 valley-bottom is above the 30wk moving average, we adjust the
Sell-Stop to the 30wk level at $40. From this point forward, Sell-Stops are
adjusted upward in $1 increments in tandem with the 30wk (see Action History
Chart, below).
Actions 4) through 6):
Step #4 - Sell-Stop adjustments in tandem with the 30wk moving
average (see Action History Chart, below):
4) 9/19/04: 30wk = $41.39 rounded down to $41
5) 10/3/04: 30wk = $42.22 rounded down to $42
6) 10/17/04: 30wk = $43.12 rounded down to $43
Action 7) - 10/24/04:
Step #1 - NYSE registers a Stage 2 - Uncertain Market
 Step
#2 - CYT flashes a Sell Configuration Signal as the 5wk moving average
passes downward through the 15wk, indicating it is too risky to continue to
hold (click on Configuration Chart, to the right). We execute a Sell on our
entire position. The transaction provides for a 21.4% gain which is equivalent
to a 50.8% Annualized Rate of Return.
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