Sabrient Select Opportunity Virtual Portfolio
Close Long Position in TSP
At today’s close, long position TSP has violated my mental stop at $20.55, so we are closing it at a price of $20.45.
It still might find support at the 50-day moving average around $20, but I’m going to go ahead and lock in the 12% gain from our entry at $18.25 on May 7 and move on to other opportunities. TSP is now only rated Hold by the Sabrient Ratings Algorithm, so I’ll let the process stop me out of the remaining position and look to Strong Buys with intriguing technicals for new swing trades.
We previously locked in partial profits at $20.70 back on June 7. Then last week, there was an opportunity to lock in a 20% total gain. Perhaps some subscribers did so. As a proponent of "profit harvesting," I look to lock in gains on partial positions once a stock has achieved 10% and 20% gains. Then I’ll let the remaining open position run (perhaps 1/3 of the initial position) with a trailing stop loss. Of course, the top priority should be capital preservation, and I never want to see a significant profit turn into a loss on any part of the original position.
For those traders who wish to give TSP a little more room and let it play out a bit longer, I would suggest closing all positions if it drops below the 50-day moving average and earlier support at $19.70.
Best Regards,
Scott Martindale, Sabrient
