Share Synthesis

3. Exit Point

Fundamentals
- I will sell Google when its fundamentals has deteriorated like decline in cash flow and also when, I am no longer optimistic on its growth. I will compare the quarterly result against the previous quarters and also the annual result too .. Will probably come up with a list similar to the one I did for entry to decide again. (This will be an exception whereby I will sell off the stock without adhering to my below stop trail set),

- I will also sell Google if its relative valuation like (P/E , P/S) has ballooned excessively.

Momentum

1. Relative Strength
Weaker 3, 6 and 12 month relative strength.. Anything below 50 will be considered weak

2. On Balance Volume
OBV is downward sloping

3. ADX
Anything between 13 and 14 indicates a weak trend

4. Moving Averages
When Occurrences of fast moving averages go below the slow moving average.

5. Trend
- Parabolic move is fully developed (three or more success trend lines)
- Stock price is near vertical

I will asses the above factors weekly and if there's a need, I  will consider to sell  the stock even when the current price is higher than my pre defined stop loss trail.





Reproduced with permission from http://melynn-lynch.blogspot.com