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Former Long Position - SYKInitial Sell-Stop was established off the valley-bottom resistance points which were below the 30wk moving average (Risk Corridor = 16.5%). The next hilltop occurred at 11/8/02 as confirmed upon the third subsequent increase in closing price on 11/29/03. The next valley-bottom occurred at 11/29/02 as confirmed upon the third subsequent increase in closing price on 1/5/03. Since the 11/29 valley-bottom was above the 30wk moving average, we adjusted the Sell-Stop to the 30wk level at $58. From that point forward, Sell-Stops are adjusted upward in $1 increments in tandem with the 30wk. However, while patiently awaiting the adjustment-point, we received the Sell Configuration Signal, which as you know by now, is non-negotiable. 2/9/03: We exit the position with a 10.0% ROI -- equivalent to a 27.3% Annualized Rate of Return. This particular issue was entirely configuration driven from beginning to end. Sell-Stops never actually came into play. But notice they were right there -- ready to catch this baby it if it fell.
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