Smart Stops for 01 13 2010

Below is a chart listing our short-term smart stops for non-mutual fund holdings. If the price of a position drops below the short-term stop price Smart Stops notifies me by email.  Upon receiving the notification we sell the position at the next available window.

By looking at the current price in relation to the listed short-term stop price you can see that risk is substantially mitigated. Sometimes after getting stopped out, the price bounces back relatively quickly and we may end up buying the position back at a higher price. We call this event a whipsaw. While whipsaws are negative we view them as the price of insurance for protecting accounts from large losses.

(Click on chart for easier viewing)