A definition of long position found in the Merriam-Webster Online Dictionary is: "owning or accumulating securities or goods especially in anticipation of an advance in prices."
This decision is a little bit difficult to make since we are using the strategies designed for day trading.
You may recall we have said elsewhere that because of the rule provided by the Philippine Stock Exchange and our online broker BPI Trade - we may just be a similitude of the stock day trader, but more like the swing trader.
Nevertheless, here are some reasons why Marginal Stock Trader is now long on Ayala Corporation:
- stock price is trending upwards for over a month since May 2009;
- closing price on June 1, 2009 is above the 10-day moving averages for the two week period of May 15, 2009 to May 29, 2009;
- stock price high of 312.50 pesos on June 2, 2009 is still at a discount close to 50% compared to that when Marginal Stock Trader first invested in this issue sometime in February 2007 over 27 months ago .
Was the decision to buy 10 shares of AC at 312.50 pesos per share based on folly or wisdom? Let us find out after Marginal Stock Trader have sold the AC stock in a couple of weeks.
Reference
"long." Merriam-Webster Online Dictionary. 2009.
Merriam-Webster Online. 4 June 2009
Related Post
Ayala Corporation Stock Investment Update
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