I am selling 1/2 of the Wyndham Worldwide (NYSE:WYN) position, almost all of which was rebought on February 5th at $20.60 area when a limit buy order was hit. After that purchase I put a limit sell order at $23.30 which would be near highs from January.
The stock looked ready to go there but, despite a big rally yesterday, the stock seemed stalled. Being a bit impatient, I am going to just move the sale from a limit order to a market order for 50 cents less, in the low $22.80s. That still generates a nice 10.5% gain in under 2 weeks; not as exciting as some of these Chinese stocks that lose or gain 10.5% in 1 session, but the stock has been priceless this past year and worked wonderfully with technical analysis, thus allowing us to trade around a core position in a very methodical manner. More "exciting" stocks have a bad habit of quite random movements that cause us many more issues. (Click to enlarge)
I will rebuy this half position on either (a) a pullback - something in the lower $21s would be nice, or (b) a move over mid-January highs of $23.50, as that should signify a potential new leg up. Today's sale will drop exposure from 1.8% of the portfolio to 0.9%.
As for the general market, every computer waits poised to jump in over S&P 1100. Please note that YESTERDAY's premarket nonsense caused yet another gap in the chart - this epic rally has been born in premarkets so we have new "gaps" to fill almost every month. We just filled 2 old gaps in this most recent selloff, and within days a new gap is created - the magic of premarket futures buying. This gap is around S&P 1078, so that could fill today, tomorrow, in 3 weeks, or in 3 months. It will happen eventually.
Disclosure: Long Wyndham Worldwide in fund; no personal position