Saturday, November 22, 2014

ABC - AmerisourceBergen

On 10/27/14, I initiated a buy on AmerisourceBergen (ABC).  I purchased shares at 78.99 just below the pivot point of 79.23.  

In hindsight, it was risky initiating a position 3 days before earnings without any cushion.  On 10/30/14, ABC beats earnings by 0.05 cents leading to a 6.4% gain for the day on volume 226% higher than normal.  I am up 7.4% for the day.

EPAM - EPAM Systems

On 10/28. I initiated a position in EPAM Systems (EPAM) @ $45.90 just below a pivot point of $46.09.  

The stock did well for the next few days until 10/31 when it dropped about 7% below my purchase price triggering my sell rule.  I was stopped out of my trade at $43.10.  The stock recovered towards the end of the day to close at a 2.31% loss.  In the days to follow EPAM's price has gone on to make new highs.

Following O'Neil's rules, I have to cut losses at 7-8% below the purchase price.  Going forward I will be setting price alerts to notify me when a stock is down 6% and make a decision then.  Wait till either close to the end of the day or end of the week to decide whether or not to close my position.