[Selling 51job, Inc. (JOBS)/Selling to Close At the Market]
Dear Member:
I am placing an order to close my position in 51job, Inc. (JOBS). The company announced substantially increased (yes, increased) earnings and revenues. Net income was up 63% over the same period last year and the stock got clobbered. It gapped downat the open today and is down significantly. I've been waiting since then for a bounce to get out.
In my initial alert, when I indicated I was buying the stock, I also set the initial exit at the uptrend line beginning in March. It did break that line on July 10th so I should have listened to what I said. Instead, based on the fact that this was an IBD 100 company and that it had fallen to the next support, I held on. It stayed in the uptrend that began in October until this morning's debacle. This one just goes to show that good earnings announcements don't necessarily make a stock go up and just because it is a good company doesn't mean the stock will perform well. I had applied money management principles to this trade so my overall loss was not great.
DISCLOSURE: At the time of publication, I own shares of JOBS.
Sincerely,
Bill Kraft
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