MHR

[Pascal]

I have a few buy orders waiting between 7.05 and 7.10 in order to fill one position.



Pascal

21086

[Pascal]

Since MHR is pulling back with EV continuing up, it is normal to think that we could add on the pull-back.
Since the Portfolio only manages five stocks, adding here would mean to increase the risk to the portfolio.
I only "add" when that move was previewed from the start. For example, I sometime buy only half a position and then add on weakness if EV continues to move up.

In the case of MHR, I will not add, but I will also sell at 6.78 (the stop level) independently of the EV pattern.
It is not a mistake to sell at a set stop loss position. This is the reason why the stop is there. I buy deep in a pull-back so that I can keep tight stops, which also means that I need to respect these stops.

MHR is being sold because the stocks in that sector are also pulling back.

What I suspect is that this market wants to bounce (See the 20DMF positive divergence.) The TBTF are seeing Fed money (or believing that more will come) and want to reload on tech/industrial names. To keep a balanced portfolio, they might be adding on their short commodities linked equities.


Pascal

21122