Madeco S.A. (MAD)

Company. Madeco is "a leading Latin American manufacturer [Chile] of finished and semi-finished non-ferrous products based on copper, aluminum, related alloys and optical fiber as well as a manufacturer of flexible packaging products for use in the mass consumer market for food, snacks and cosmetics products." (company website)

Buy. MAD came above the $5 level just as most other stocks were taking a slide. MAD, to the contrary, continued to rise. When it crossed the $6 level, I bought.

I have been watching MAD closely, because, according to the conventional wisdom, it is overdue for a correction. Since crossing $5 it is achieved eleven new highs without a pull-back, and the rule-of-thumb, as I understand it, is to expect a pullback after seven new highs.

Sell. MAD reached another new high of $8.25 at yesterday's open but drifted lower from that point on. When it opened still lower this morning, I decided that the correction must be at hand and sold at $7.15, down more than $1 from yesterday's high. Nevertheless, this gave me a profit of more than $1 per share.

I may have sold too hastily. Volume to that point had been quite low (less than 30,000 shares), and there were few offers in the queue. At the moment, it is back up to $7.30 with volume over 85,000 shares. Not to worry — a profit is always a good thing.