Surf's Special Situation Journal

[Fah Q]

Quote from marketsurfer:

Down about $3 on the JCP short. Things are unfolding slower than forecast but nothing has changed with th macro picture on the company. Continuing to hold. surf

and getting uglier

 

[Laissez Faire]

Quote from marketsurfer:

Down about $3 on the JCP short. Things are unfolding slower than forecast but nothing has changed with th macro picture on the company. Continuing to hold. surf

Was it not a price driver analysis? Or is it a macro analysis?

Because if you are down $3, the price drivers seems to be driving price opposite of your analysis.

 

[Fah Q]

Quote from marketsurfer:

Down about $3 on the JCP short. Things are unfolding slower than forecast but nothing has changed with th macro picture on the company. Continuing to hold. surf

opportunity cost of capital is not important i guess

 

[marketsurfer]

Stepping in here, shorting same size at 27.90 to increase break even level.

Yes, it is a price driver trade but these particular inputs are obviously early.

surf

 

[marketsurfer]

Quote from Fah Q:

opportunity cost of capital is not important i guess

Proper position sizing relevant to goals/account size should never allow short term opportunity cost to be a factor in holding a position for the drivers to activate. we are not day traders.

surf

 

[Brass]

Well, I wish you luck, even though it would appear that you favor buy and fold, so to speak. How long have you been holding the position now?

 

[Fah Q]

Quote from marketsurfer:

Stepping in here, shorting same size at 27.90 to increase break even level.

Yes, it is a price driver trade but these particular inputs are obviously early.

surf

where is the stop?

 

[marketsurfer]

Quote from Fah Q:

where is the stop?

Stops are for weak hands, nervous nellys and over leveraged pikers. I'll close the position when/if the underlying logic changes. surf

 

[Brass]

Quote from marketsurfer:

Stops are for weak hands, nervous nellys and over leveraged pikers. I'll close the position when/if the underlying logic changes. surf

What percentage of your account equity are you willing to let the position go against you before you reconsider, drivers notwithstanding?

 

[ChkitOut]

jcp move up from mid july is pretty strong. although i think medium term top somewhere up here is good, we'll probably get more sideways than down for a while.