Sabrient Select Opportunity Virtual Portfolio
Harvest Partial Profits in USG
As I have discussed before, I am a proponent of "profit harvesting," in which you take partial trading profits in a position once it moves strongly in your direction. In general, for swing trades, I would look to bank some profits once a stock position has provided a 10% gain, and then again when the balance of the position has reached a 20% gain. Today, we have an opportunity to lock in more profits in short position USG.
USG is down over -7.0% today on overall market weakness. Its current price of $12.74 puts our short position at about a 22% profit from the original entry price of $16.30. (We already booked profits on 1/3 position last week.) So, I recommend buying back another 1/3 of the original short position at the current price or lower, if you can monitor it. This allows us to bank some nice partial profits while letting the final 1/3 of the short position ride in anticipation of even lower prices.
For the remaining open short position in USG, I will move the mental stop to a closing price above today’s opening price of $13.29.
