Yesterday the Computershare (CPU) position was closed when the stop loss level of $23.70 was reached shortly after the start of trading.
The fall in the CPU share price followed the release of full-year 2022 results, while the numbers released paint a positive picture for the company, the results missed market expectations.
Overnight In the US, the latest inflation number for July were released. The consumer price index rose 8.5% from a year ago, below expectations, mainly due to falling energy prices. With inflation looking to have peaked, the rapid pace of interest rate increases by the Federal Reserve is likely to slow over the coming months.
One of the main reasons for entering a position in CPU was our expectation that interest rate increases would continue at a fast pace for the remainder of the year. With our expectations now changing, exiting the position for a small loss is the right call.
Closed position result
Number of shares: 300
Entry Price: $25.16
Exit Price: $23.70
Loss: $438.00