I'm closing my recommended Buy position with Supervalu (NYSE: SVU), first recommended on April 22, 2009 at a price of $14.98. Grocer/food distributor Supervalu's shares have drifted lower over the past six months, and traded below its 50-day moving average for more than a month twice -- a bearish sign.
SVU's chart, from a technical standpoint, now resembles a bear hug in a downtrend, and given a less-than-rosy revenue and earnings outlook, the argument is tipped in favor of taking the modest loss with the trade now.
(A bear hug occurs when a stock in downtrend falls below its 50-day moving average, then straddles it, before falling below it again.)
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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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Reader Comments (Page 1 of 1)
8-18-2009 @ 9:54PM
drsausage said...
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