Adding to Dragonwave on a Pullback
Trader Mark submits:After a stellar earnings report Thursday night, DragonWave (DRWI) flew higher Friday and I thought I was going to be stuck with my position size unless I "chased". Chasing has been the way to go for much of this rally since March 2009; it is just not my favorite thing to do. Thankfully, today we have a pullback into the upper $12s on the stock, and the rare situation when a stock that smashes estimates doesn't run away from you appears to be in our hands. Potentially DragonWave could close that gap created by Friday's moon shot either right before 4 PM or first thing tomorrow morning (gap at $12.42) 
As I type, the stock is $12.71 where I am going to add to my position; I will also place a larger limit order tonight just under $12.50 to see if I can snag it right at the "gap". After today's purchases, we will wiggle our way up from a 1%ish allocation to something closer to 1.75%. (thank you market gods) If I can get $12.50 or lower I'd like to get this name well over 3% - perhaps higher.Complete Story »
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