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Former Short Position - INTUInitial Cover-Stop was established off the hilltop resistance points which were above the 30wk moving average (Risk Corridor = 29.2%). The next valley-bottom occurred at 2/7/03 (concurrent with the Short-sell) as confirmed upon the third subsequent increase in closing price on 2/28/03. The next hilltop occurred on 3/14/03 as confirmed upon third subsequent decrease in closing price on 4/4/03. Since the 3/14 hilltop was above the 30wk moving average, we adjusted the Cover-Stop to $51 off the hilltop resistance points. The next valley-bottom occurred on 4/25/03 as confirmed upon the third subsequent increase in closing price on 5/16/03. The next hilltop occurred on 6/20/03 as confirmed upon third subsequent decrease in closing price on 7/11/03. Since the 6/20 hilltop was above the 30wk moving average, we adjusted the Cover-Stop to $47 off the hilltop resistance points. We never got a chance for further adjustment after that. We hoped this one would take a larger downward hit. DeWayne in Ellicott City was in agreement with us when we said we didn't like the new additional security restrictions Intuit had placed on their TurboTax products. Nor do we like their practice of abandoning support on QuickBooks products that are only three years old. We apparently were not alone in perceiving INTU's attitude toward their customers had become cavalier if not downright greedy during early 2003. 9/7/03: No question it was time to abandon this Short position. We experienced a Cover-Stop violation AND a Cover Configuration Signal. We do not argue with these signals because they say it has become to risky to continue to hold as a Short position. We took a 10.1% controlled loss.
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