Sunday, October 14, 2007

Our Bunge Play Is Up 46.23%... Lock In Profits Using a Trailing Stop

Bunge has steadily climbed since we added it to the portfolio a few months ago...

So far, we're sitting on 46.23% in potential gains here, as the stock has jumped about $32.82 per share.

I'm inclined to lock in some of those gains by placing a 25% Trailing Stop under this position... meaning we'll sell if it closes 25% below the previous closing high since recommended.

I do this not because I'm worried about a major downturn in BG based on anything reasonable or fundamental... but simply as insurance against a market I still consider to be unstable.

Action to take: Place a 25% Trailing Stop below our Bunge (BG) position, at $77.86.

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