Simple Trading Stalk Candidate Update – SWKS – 18 July 2014

simple trading swks

SWKS reported and guided higher yesterday sending the stock on a run this morning.  I first wrote about SWKS on The Art of Simple Trading Facebook Page in February 2013.  I wrote about it again on 2 September 2013 and 22 January 2014

The stock has done extremely well over that time period.  As a result, the question becomes (as ever)…

What Now?

In the paraphrased words of Nicholas Darvas, “there’s no reason to sell a rising stock.”  However, since prudence is the better (wiser?) part of valor, it might make sense to scale out of a portion of your position… assuming of course you have on more than a single share, contract, etc.  Selling half and sitting on the balance with a stop down around $34 looks fairly logical…

Alternatively, you might consider selling the whole position and then patiently stalking the name for a good reentry.

Whatever you choose, make sure it’s based on sound trading logic… and then stick to it.