Former Long Position - BEAS
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.
On 12/19/04, we received 7 Buy signals for stocks in our Universe and BEAS is
the one we chose to execute. We like the looks of both
the Configuration and Action History charts; the Risk Corridor is in the comfort
zone, and; the upside to the historic high ($81+ in September 2000) is huge. In addition, they
are in a growing market niche and they have a very strong customer list.
Action 1) - 12/19/04:
Step #1 - NASDAQ registers a Stage 3 - Bull Market.
 Step #3 -
BEAS flashes a Buy Configuration Signal
(click on Configuration
Chart, to the right). We execute the Buy. Initial Sell-Stop is established off the
most recently confirmed valley-bottom resistance points which happen to be
above the 30wk moving average. However, at this Sell-Stop level, the Risk
Corridor is a very comfortable 12.3% (see Action History Chart, below). We
plan to leave the Sell-Stop level intact until the 30wk rises to $9.
Action 2) - 3/27/05:
Step #2 - BEAS closed at $7.94 on Friday, March 25. Since this is
below our Sell-stop level of $8 this represents a Sell-stop violation. As
this is our first Sell-stop violation with BEAS (i.e., Strike One), we
Sell half of our position. This transaction results in a loss of 11.6% on the closed portion
of the position. Half of our original position is still alive (see Action
History Chart, below).
Action 3) - 4/3/05:
Step #2 - BEAS closed at $7.89 on Friday, April 1. Since this is
below our Sell-stop level of $8 this represents a Sell-stop violation. As
this is our second Sell-stop violation with BEAS (i.e., Strike Two), we
Sell half of our existing position. This transaction results in a loss of
12.1%, bringing the cumulative loss on the closed portion
of the position to 11.8%. One-fourth of our original position is still alive (see Action
History Chart, below).
Action 4) - 4/10/05:
Step #2 - BEAS closed at $7.65 on Friday, April 8. Since this is
below our Sell-stop level of $8 this represents a Sell-stop violation. As
this is our third and final Sell-stop violation with BEAS (i.e., Strike
Three), we
Sell the entire remaining balance of our existing position. This transaction results in a loss of
14.8%, bringing the cumulative loss on the closed portion
of the position to 12.5% (see Action History Chart, below).
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