Diary of a Financier

Open Buy Stop Limit Order on Comcast

In Capital Markets on Thu 9 Dec 2010 at 17:10
  • Open stop limit to buy CMCSA at $20.95 on strong LT & ST technicals.
  • Taking paper profits in CTL/VZ/WIN in exchange.
  • Telecom will continue to outperform; maintaining pair: long IYZ & short IDU.

Leaving a buy stop limit open overnight for Comcast (CMCSA) at $20.95.  The technicals show terrific short term & long term demand for the stock if MACD can reach a bullish cross.

CMCSA Daily Chart

 

Today, I divested of strong ralliers like CenturyLink (CTL), Verizon (VZ) & Windstream (WIN) to take profits while the gettin’s good.  Yet, the Telecom sector is still poised to outperform in this cycle, so I’m willing to participate in CMCSA, which has lagged the Telecom rally and still has juice to squeeze.  If the weekly chart’s MACD flashes divergence when the daily chart tops out in this trend, I’ll buy put protection on CMCSA.

CMCSA Weekly Chart

In addition, I’m maintaining the pairs trade: short Utilities (IDU) & long Telecom (IYZ) (+3.91% since 11/10).

Over November, I brought in big new client money to put to work , but I’m deploying it slowly.  I’ve been quite nimble in our portfolios over the past two months, and as I look for new opportunities, I’m finding myself more comfortable in select single name equities with a few balanced pair trades to capture relative strength divergences.  In addition, we’ve refrained from new bond allocations, choosing to sit cash instead.

–Romeo

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