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Wednesday, August 18, 2010

More "Lines in the Sand" ...

This entry is a continuation from yesterdays entry in regards not only the various dividend stocks I own, but where I plan to take my profits off the table in my own personal accounts, from the 'surprise' that I mentioned on August 10th, 2010. Yesterday I discussed Frontline Ltd (FRO), DTE Energy (DTE) and Shipping Finance Ltd (SFL).

The first stock to discuss today? Taiwan Semiconductor (TSM). This one I originally picked up at $11.04, and have averaged down since, and reinvested all of the dividends into more shares.

Taiwan Semiconductor (TSM) - Daily Chart
(Can be Enlarged):

I'm not really looking forward to dumping this stock if it sinks below $9.62, because this one would represent an actual loss. Not a large loss, but a loss all the same. If we get a rally up to $10.50, I'd be much more comfortable.

The next stock in the list is McDonalds (MCD). Yes, as long time blog readers know, although I sold most of my McDonalds off at something like $71.00, I still have a little bit (this is actually smallest position I have in my personal accounts) left from when I originally entered this stock at the $59.00 region.

McDonalds (MCD) - Daily Chart
(Can be Enlarged):

So at this point, my profit stop is around $71.04. As I've mentioned, this is adjustable. If McDonalds continues to gain ground, then my profit stop will float up along with it. This is known as 'trailing your stop' if you are new.

Now, let's proceed to some stocks that are held in the Challenge Project. Coca-Cola (KO). I obviously won't be selling the Challenge Project stock, but I do need to talk about selling it for other personal accounts that I originally bought in at around the $53.00 region.

Coca-Cola (KO) - Daily Chart
(Can be Enlarged):

The "profit stop" point on this stock is at $55.08. Again, I'll be keeping it in the Challenge Project accounts however. The same holds true for Johnson & Johnson (JNJ) which I originally bought in at around the $59.00 region, and have averaged down a few times ...

Johnson & Johnson (JNJ) - Daily Chart
(Can be Enlarged):

Here, I'd exit at about break even if I had to sell at $56.96
since I averaged down during the 2009 slide. Regardless, $56.96 my current 'liquidation point' for personal accounts.

Next, comes Procter & Gamble (PG), originally entered at $61.16. The stop as it stands now for personal accounts would take me out with a small loss at $59.11

Procter & Gamble (PG) - Daily Chart
(Can be Enlarged):

And then General Mills (GIS) originally entered at $70.30 Remember that this stock has gone through a 2:1 stock split, so it's actually up a bit more that what it would read from some charts (So that'd be an entry of $35.15. The market is up by a few cents and currently closed at $35.38). The stop here is at $33.35, but I'd be willing to pull this one up very quickly on the slightest hint that this thing won't clear resistance at $36.00; so that an exit can be made profitably.

General Mills (GIS) - Daily Chart
(Can be Enlarged):

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 14 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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