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Well that was a short stay - we are stopped out of the portion of RF Micro Devices (RFMD) we bought this morning at $5.09 at $4.86 - I thought that was a good amount of leeway but not so much. We cut about 45% of the position.

Not only has the gap been filled, but "more". I tend to get moved in and out of stocks a lot when they are right near a moving average with my style because all it takes is a 3-5% move and purchases turn into sales very quickly. (or vice versa) So no surprise here; this happens often.


Buying opportunities have been so short (selloffs have been measured in days if not hours for months on end), that you tend to have recency bias and reach out for any opportunity to buy. There is no harm in that, but one must recognize conditions if they change.

Despite being my favorite sector fundamentally, I will always be a slave to price action, and as we've broken support intraday we'll respect that. The close is always more important than intraday, so we'll see if there is any late day recovery in either the stock or the greater market.

As for the markets, we just finished our 8th straight up month. I believe a reader had posted a month ago the record was 9 in a row. "Sell in May and go away" was laughed at. "Beware of September" was laughed at. Now we have the month of crashes, October. I don't count on any crash, but sheesh a 5% correction would be nice.

I am maintaining the extra short positioning, and this morning put stop loss orders on most major long positions- as the market drops (if it continues) we should be taken out of more long exposure and be hedged to the dark side. Still looking for S&P 1020 as a good first target.

As I said in the weekly summary, the last 2 days of this week would be very interesting - so far, so good.

Long RF Micro Devices in fund; no personal position

Source: My Short Stay in RF Micro Devices