CONSIDER SCALING OUT OF UYG ,DGP AND BMY
We scaled in UYG between $7.97 and $ 7.50. Our average is $ 7.66. At today’s close of $11.03, we are sitting on a gain of $45% in few short days. Our methodology requires scaling out of 50% of the position between here and $13.80. Based on your risk tolerance and time frame, consider exiting 10-20% of the position right here at $11 and adding to the position on pullbacks around $9.
Similar logic applies to BMY and DGP. Consider lightly scaling (10- 20% of the position) out of
BMY around $21.60 and DGP around $14.35
November 4, 2008