TIE - Business Decisions

I bought TIE last week for 18.68 (see real-time execution in last post) because I liked the chart and the technicals so well. Since the breakout, however, TIE has had a couple of sharp pullbacks, and it had a third sharp pullback today.



At the rally to 18.65 (the high of the triangle in this 10-Minute chart), I had a paper gain of nearly $1,000. "It ain't a gain until you sell." Basis this 10-minute chart, we can see that a Descending Triangle formed. It has descending highs and a flat bottom. It broke down this morning (see white arrow), putting a downside target of roughly 18.55 IN PLAY, below my 18.68 entry. UGH. TIE sold off to a low of 18.60, so my $1,000 paper gain not only evaporated, I was down $80. UGH.

Sharp selloffs really test one's mettle and the strength of one's conviction. Basis the daily chart, TIE still looked fine, but I had had enough of the sharp pullbacks and decided to sell TIE on any rally back toward this morning's Descending Triangle breakdown. I sold it at 18.91 and 18.92 for a gain of a little over $200.

Needless to say, I wasn't real happy to see TIE rally back above the bottom of the Descending Triangle (19.10) and CONTINUE to rally and go positive, closing at 19.37. UGH. That's the way the game is played "in real time," though. It's easy to see at the close that I would have been fine holding the position, but that's with the advantage of hindsight. I had spent a week working on TIE and at the 18.60 low this morning, I decided to move on to something more productive.



I shorted and covered a postion in Joy Global (JOYG), for a gain of $700+ in a couple of hours. That felt more productive ;)