RKT Analysis

On February 3, I posted this analysis on RKT. The target exit was $69.38 or 5 days.

I opened a long RKT trade on February 4, at $65.35.

[url]http://www.effectivevolume.com/content.php?2560-Portfolio-Management-for-February-3-2015[/url]

Yesterday, RKT closed at 69.31, which is 5.4% above its 5MA of the previous day. The stock is extended (see below). The question is therefore what to do with the position.

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The best is to try both short and long positions at the close of yesetrday and see what stats are produced.

First, let's test a short overbought trade. We can see that the stats are slightly positive.

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However, if we short, we should cover after just a few days.

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Below is a buy trade at the close of yesterday. We can see that the stats are better, but mostly that keeping the stock for a lo,nger period should be a good idea, as we will ride the trend higher.

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The only thing that I did was to simply raise the stop to 66.3. The target is now raised to $75.05

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The sensitivity analysis also shows that I can increase the position on pull-backs.

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