Windfall

• April 9, 2002
• Duke Heberlein

Why am I a trend follower? Because for the most part any surprises tend to
occur in the same direction as the trend. You never know for certain when they
will happen, but you can get yourself in position to take advantage of them when
they do take place.

 

04-03-2002

11:58:42

 Wendy’s (WEN)
is pulling back after its recent move higher. WEN is down 0.36 to 34.23 and
carries a

3-month relative strength rank of 82 from TradingMarkets.com.

 

 

The stock continues to make a nice move out of the pattern in
the three succeeding sessions. Note the strong closes each day.

 

 

Tuesday, the stock gaps to the upside on the open and does not
look back.

 

 

This is an example of why I scale out of positions as they
become profitable and use trailing stops on the rest of the shares, letting the
market take me out rather than arbitrarily exiting a swing trade. You will give
a little profit back by doing so, but in the long run you will find yourself
getting gifts like this one, once in a while.

Until tomorrow,

Duke