Former Long Position - MTG
Action number references are to actions shown
on the Action History Chart at the bottom of the page.
Step number references are 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, it has a moderate Risk Corridor,
and the historic high ($75+ in June, 2004) is a redundant ceiling we would like
to see exceeded.
Action 1) - 7/10/05:
Step #1 - NYSE registers a Stage 3 - Bull Market.
 Step #3 -
MTG 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 14% (see Action History Chart, below).
Action 2) - 11/13/05:
Step #4 - The third subsequent ascending close confirms a
valley-bottom at 10/21/05 ($58.25) which we rounded down to $58 to establish a
new Sell-stop level (see Action History Chart, below). As the 11/11/05
valley-bottom was below the 30wk moving average, we will await the next
valley-bottom to form to trigger our next Sell-stop move.
Action 3) - 3/12/06:
Step #4 - The third subsequent ascending close confirms a
valley-bottom at 2/17/06 ($62.80) which we rounded down to $62 to establish a
new Sell-stop level (see Action History Chart, below). As the new Sell-stop
level is below the 30wk moving average, we will await the next
valley-bottom to form to trigger our next Sell-stop move.
Action 4) - 7/16/06:
Step #2 - MTG closed at $61.57 on Friday, June 14. Since this is
below our Sell-stop level of $62 this represents a Sell-stop violation. As
this is our first Sell-stop violation with MTG (i.e., Strike One), we
Sell half of our position. This transaction results in a loss/negative ROI of
-5.3%. Half of our original position is still alive (see Action
History Chart, below).
Action 5) - 7/23/06:
Step #2 - MTG closed at $57.82 on Friday, June 21. Since this is
below our Sell-stop level of $62 this represents a Sell-stop violation. As
this is our second Sell-stop violation with MTG (i.e., Strike Two), we
Sell half of our remaining position. This transaction results in a loss/negative ROI of
-11.2%, bringing our cumulative loss on the closed portions of the position to
-7.2%. One-fourth of our original position is still alive (see Action
History Chart, below).
Action 6) - 7/30/06:
Step #2 - MTG closed at $57.30 on Friday, June 28. Since this is
below our Sell-stop level of $62 this represents a Sell-stop violation. As
this is our third Sell-stop violation with MTG (i.e., Strike Three), we
Sell the entire remaining balance of our position. This transaction results in a loss/negative ROI of
-11.8%, bringing our cumulative loss on the closed portions of the position to
-8.4% (see Action
History Chart, below).
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