Bottom Fish Optical ACIA

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I’ve  been watching ACIA for a few months now. In full disclosure one of my UK students added the name to our student investment portfolio and  his fundamental work on the name has kept me interested. The stock has been punished lately due to pin action on any optical name with Chinese exposure. My read on the china stocks may open the door for this one to finally catch a sustained bid. With a stop at new lows (42.40) I have gone ahead and started this name.

Entry: 48.92
Stop: 42.40
Shares: 91
Risk: $593.32

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New Positions: BGG, BITA

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BGG broke a longer term trend a couple weeks ago and is now pulling back offering an ideal entry spot with decent risk reward. With a stop at $20.75 I have taken a new position here.

Entry: 23.56
Stop: 20.75
Shares: 215
Risk: $604.15

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BITA is trying to break a longer term base and this trade is a reactionary breakout trade. I like the fact that this shook out weak holders and is now going for the break.

Entry: 32.63
Stop: 26.65
Shares: 110
Risk: $657.80

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Correction Has Begun

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It was long overdue and it matters now how it transpired the correction has  begun and now traders must be patient and extremely disciplined. For no other reason than a gut feel, something I normally don’t like to do, I reduced exposure yesterday taking off margin and bringing my live risk equal to my unrealized profit. The portfolio dropped 3.78% today which is quite a bit however in-line with the beta I’ve accepted on the positions I’ve taken. It’s never fun to lose money but it’s part of the game. At present 30 of my 35 positions are post 1x with stops far far below. It would take a prolonged bear market to stop positions like IRBT (stop 52) SHOP (stop 43.05) BRKS (stop 12.99) and others out, but if it happens you can bet I’ll take them off and step aside.

Prior to today the portfolio reached new highs well over 30% since November and at present my live risk of $27,742 is just a shy above my unrealized profit of $27,202.

It was an ugly day for sure but the number 1 rule is to stay alive and keep trading. If you’re not already calculating your live risk and double checking those stops, spend a few hours and do so. Hang in there, tomorrow is another day.

 

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Selling AXTA OMN reducing butter

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I’ve been buttered up in my account for the entire year and so far it has worked well. With that said, I feel as if I’m pushing my luck a bit and don’t want to get nailed in a normal correction. With this in mind I’ve reduced some positions which haven’t done a thing yet and I certainly CAN live without. I went ahead and sold AXTA and OMN both stocks that haven’t moved much at all since starting them in the portfolio.

These sales bring me to being 105% long with a majority of the portfolio post 1x. My two largest pre 1x positions are INTC and BIDU both of which I’m fine holding to see how they play out. The break today in BIDU is encouraging and a 1x partial sale here would eliminate all margin completely.

 

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