Guest Post: Deckers Outdoor Corporation
Posted on March 10th, 2007
Written by Phileo
Posted in: N/A (old archives)
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I got the idea for Deckers Outdoor Corporation (NASDAQ: DECK) from the Motley Fool boards.
1. Why did I take this trade?
I still have a soft spot in my heart for breakouts, even though this market environment has changed. Plus, DECK behaved relatively well enough on the daily charts. On Monday, I bought when it broke above 68, @68.05 .
2. What was the initial stop?
This part was more an art. I placed an alert if DECK dropped below 67.5, and did not watch it for the rest of the day. When the alert went off just before market close, I took a look at it, but decided not to sell, because I believe that the uptrend was still intact, and that this was noise.
I reviewed the chart only once (on Wednesday) after the initial buy, and moved the stop up to just under 68.
3. Why did you exit where you did?
I got worried about the market’s down move on Friday and started watching DECK a bit more. I sold when I saw it drop below 69. Plus, I just didn’t feel comfortable holding it through the weekend.
4. Is there anything you would do differently?
I still haven’t gotten into the habit of working out a profit target. Stocks tend to have an affinity for whole, integer numbers as support/resistance levels, and DECK was no exception. Recognizing this sooner would have helped me to sell @70, or just continue holding.
I should also review the chart of a swing holding at least once per night, because you just never know.
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