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Former Short Position - LTRInitial Cover-Stop was established off the hilltop resistance points which were above the 30wk moving average (Risk Corridor = 27.4%). The next valley-bottom occurred at 7/19/02 as confirmed upon the third subsequent increase in closing price on 8/9/02. The next hilltop occurred on 8/30/02 as confirmed upon third subsequent decrease in closing price on 9/27/02. Since the 8/30 hilltop was below the 30wk moving average, we adjusted the Cover-Stop to the 30wk level at $54. From that point forward, Cover-Stops are adjusted downward in $1 increments in tandem with the 30wk. 1/12/03: Cover-Stop violation yielded a 2.2% ROI. Half of our original position is still alive. 5/25/03: 2nd Cover-Stop violation. Yielded 8.1% ROI on this trade. Now at 4.1% cumulative ROI with 25% of our position still alive. 6/1/03: Third and final Cover-Stop violation. 1.2% ROI on this transaction bringing the final overall ROI for this position to 2.7% (after dividends, which in this case, as a Short position, counted against us). Effective use of Cover-Stops guided us in keeping our exit transactions positive.
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