As I went through positions a few weeks ago Allegiant Travel (ALGT) is one that had me torn; dirt cheap but in a death spiral as the "long oil / short airlines" trade was wrecking havoc, even with the best operators. With the stock in the mid $30s ($35-$36) I put in a limit order to sell at $38 as the 200 day moving average was just above (currently @ $38.70 or so) which is where the stock jumped to today intraday. I feel more comfortable being long stocks over their long term moving average so what I like to do in situation like this is lighten up (in case the stock just turns back down) and then if we "jump the gulf" over the moving average I'll pay up a bit to get my position back.
I will post a chart later but there was a quite large volume surge Friday which I assume led "technical trader" types into the name today. It's moved intraday from the $33s to $38s since Friday morning. Who is to know why the sudden move after weeks of pounding.
Today's sale takes us down from a 2.1% stake to about 1%, but pending the movement in the coming hours or days. Remember, we are in mark up season and we're doing a most excellent job of it yet again. Might be able to get to recent highs in the S&P 940s by end of day tomorrow if we work in unison.
Long Allegiant Travel in fund; no personal position
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