Cirrus Logic (CRUS)

Company

"Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of innovative customers. Building on its diverse analog and signal-processing patent portfolio, Cirrus Logic delivers highly optimized products for a variety of audio and energy-related applications. The company operates from headquarters in Austin, Texas, with offices in Tucson, Ariz., Europe, Japan and Asia." (company website)

crus(1-1)
CRUS 4-month chart
crus(1-1)_1yr
CRUS 1-year chart

Buy

26 March 2010. Bought 500 CRUS at $7.92.

Cirrus Logic hit the $8 level early in 2010 then dropped back to below the 50-day moving average. It is now testing the level again.

  • Percentage price oscillator (PPO) — hust below the signal line
  • Volume — high volume yesterday's deliberation day

Based on technical analysis, MarketEdge calls CRUS a "hold" and notes "mildly deteriorating conditions."

Sell

gain Bottom line
28%

16 April 2010. Sold 500 CRUS at $10.16.

A week ago, after CRUS made a big move up, I was almost convinced I should take profits and say 'thank you', but it's a good thing I didn't because CRUS made another big jump this week. This morning, however, there was enough profit-taking to trigger my stop-loss order, and I was stopped out. (Given my luck, it may turn out that I was stopped out at the low of the day!)

I am now setting my stop-loss orders to trigger based on the asking price rather than the last trade (for long positions). This has mitigated the effect of outlying trades — too often my stop orders were triggered by a single trade way out of range for the day. By using the asking price I am, in effect, saying, "Well, if other people holding this stock are willing to sell for that price (my stop), I'd better get out too."