TCBI - part trois

TCBI part trois

TCBI did not break out, but we were prepared for that to happen since we didn't see a "True" 3 weeks tight pattern with a higher volume breakout day.   The market settled 2% from it's 52 week high and it looks like it is catching a breather to build up some strength to push higher...unless we get some bad macro news  like (Iran, Syria, Fed, Italy, Spain, etc. etc. etc.).   You can always find a reason to hunker down but until you get that signal it doesn't pay to play chicken little.

 We had several options after we brought up our Phesis (yeah, I know it should be thesis...) that this wasn't an ideal breakout:

A

• Sold our shares at the end of the day after you confirmed the volume was not sufficient.
• Wait until a valid base is formed and enter a position with a proper volume breakout.

B

• Sold our shares at the end of the day after you confirmed the volume was not sufficient.
• Repurchase at a predefined support level 43.30 (cool that it was definable to a degree)
• Wait and see if another base forms above the purchase price with a hard stop at $43.25

C

• Entered  a fraction of a position 
• Ensure it does not break our "Max Pain" support level which in this case is close to the $43.30  area if you chose a 3% stop.  I like to place hard stops 15 cents below a support area so you don't get taken out of a position during the day by the machines.

TCBI did not go down in high volume so it still looks interesting.  The fundamentals are doing well so it's worth to keep this on our radar.  If you wanted to make a case for a 43.89 buy point as it retraced to it's 50 day moving average back on the 23 of July it would only be extended by 1% as of today's close.