FAST close out and recap

Malcolm Myles on

Hi Everyone,

I got called away on my FAST trade today - never challenge Taleb in an investor forum.

So I made the lower level of my calculated trade $803 (net gain from purchase of stock, selling stock and call premium + special dividend) in 32 trading days and I'm back into a cash position. Essentially, I achieved what I set out to do with the trade - capture a special one time dividend of $0.50/sh in a profitable manner. Pretty satisfied.

I got called away because FAST has run from 41 to 48 in the trade period. My "technical research" led me to believe that the stock would bounce around 42-45 range when I placed the trade. Schwab's Recognia technical analysis software had the stock at 8 bearish technical events and 2 bullish technical events for the short term. Resistance for a short position (which is what mine was) was $43.08 and support at $40.77. My technical skills are not good, so I relied on the program.

FAST blew threw that price and now Recognia has updated its report - it has 15 Bullish and 4 Bearish events. Thanks guys, good call. support at $43.09, resistance at $52.75.

I also had ratings on the stock from other sources that listed the stock as an avoid - Schwab, Navalier, Market Edge. So I was comfortable that the stock wasn't going to rally. I was also convinced that wives wouldn't buy bags of nuts and bolts for Christmas - obviously flawed logic.

So I guess I need to consider technical analysis reports like I do the daily weather man reports... Anyone have a Stock Goat? Weather Goats I trust.

Hope this was informative case study, but I don't think it will be very beneficial as the year end Special Dividend rush was conditional on Congress changing the tax laws. I don't expect to see this "weather event" again.

Cheers,

Malcolm

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