Take Profits on Splunk: Sell to an Anxious Buyer Called Cisco
Take after legendary trader Jesse Livermore on this news.
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On September 11 I wrote this about Splunk SPLK :
"Bottom line strategy: I underestimated the upside on SPLK in my last review. SPLK looks like it can work higher but the question is where should we be a buyer -- on a pullback to $120 risking to $112."
The shares dipped to $120 so I will assume that some Real Money subscribers were buyers.
With the announcement Thursday of Cisco CSCO paying $157 in cash for Splunk I am now recommending that traders who are long SPLK should take profits.
The legendary trader Jesse Livermore was reported to have used unexpected bullish news to take profits on long positions on stocks. I think that is a good idea on SPLK.
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