Friday, October 8, 2010

VMWare - VM - deleted 10/7

I deleted VMWare (VMW) for the Barchart Van Meerten New High portfolio.  It's ironic that the when Ken Kam asked me about my best performing stocks in the Barchart Van Meerten New High portfolio my top holding was VMWare (VMW). I bought the stock back on March 9th at 54.69 when it came up on my stock screening, meeting all of my buy criteria.  I watched it climb steadily staying above its 50 and 100 day moving averages till on 9/20 it hit a high of 89.30.

That week it started to stall and by 10/7 lost its price support and dropped below it's 20 and 50 day moving averages.  I had sell signals on several of the technical indicators I follow and the 14 day Relative Strength Index dropped to 36.52 and was falling.

I put in my sell order the day the article hit Forbes and was able to close at 77.31 which was 13.22% off it's high.  Buying at 54.69 and selling at 77.31 made a 41.36% gain on the position. I held for 7 months.  That would be an annual return of around 71%.  I wish I could do that with all my positions.

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