Sabrient Select Opportunity Virtual Portfolio

Close Out Big Gains in Shorts MGM, TOL and USG

As I’ve mentioned before, I am a proponent of "profit harvesting," in which you take partial trading profits in a position once it moves strongly in your direction. In general, for swing trades, I look to bank some profits once a stock position has provided a 10% gain, and then again when the remaining position has reached a 20% gain. For the balance of the position, I let it run as far as seems prudent, often employ a trailing stop to ensure locking in a gain.

MGM, TOL, and USG have all been hit hard since the beginning of May. The Select Opportunity Virtual Portfolio jumped in on short positions in early June for MGM and TOL, and in mid-June for USG. All have produced stellar gains for us in a relentless selloff. They are all deeply oversold now, and although Sabrient’s fundamentals-based model still ranks them quite low and gives them each SELL ratings, I am going to buy to close the final 1/3 short positions on all three into today’s pre-holiday weekend weakness and look for new opportunities next week. 

I’m looking at the following prices: MGM at $9.40 (+26%), TOL at $16.00 (+21%), and USG at $11.88 (+27%). If you prefer to stick with these shorts rather than close them today, keep in mind that I won’t be tracking them for the Select Opportunity Virtual Portfolio any longer.

Best Regards,

Scott Martindale