Everything I said 2 posts earlier about HDFC Bank (HDB) applies to Riverbed Technology <span style="font-weight: bold;">(RVBD).
We have a latent gap much earlier in the chart; if the market implodes buying anything long will be stupid; I am trying to thread the needle for an oversold bounce. Rinse. Wash. Repeat.
I was stopped out of RVDB last Thursday @ $21.90; the stock is not much lower now but just above its 50 day moving average... so I'm going to purchase here at $20.80. $20.50 is the 50 day moving average so I'll stop out below $20 in this case to give me some room. I'm taking RVBD back up to a 2% type of stake from 0.2%.
The gap? Just over $15... if $20 is breached I'll probably be short this name assuming that gap fills. On a side note Research in Motion (RIMM) continues to be weak. "Technology is safe" thesis is being hit now, as we predicted.
As always it is quite amazing how fear turns to greed and vice versa - very quickly. We're at S&P 875 which many are looking at as the line in the sand (I was using 880). Now we will see if reader Guy is correct in that a swipe below support to draw in the bears, before reversing up is the master plan. Or if we begin a free fall of panic selling.
Of course it 'feels' terrible to be buying anything right here since the propensity for the beginning of a "waterfall" type selloff could be right around the corner. So we'll see.
Long Riverbed Technology in fund; no personal position
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