PLAY: Sell your CTXS March 72.50 Puts (O:CTXS 11O72.50) at market, good for the day.
Dear Bottarelli Research Member,
Keeping with our fast and nimble approach, the markets are setting the tone for a possible bounce, so let’s exit our CTXS March 72.50 Puts (O:CTXS 11O72.50) and evaluate the next move.
Again, this is a safe approach to trading that we have to take in this choppy market. Until we have a good sense of the market’s next directional move, we must evaluate the markets on a minute by minute basis. That’s why we’re closing out these plays so quickly.
Just look at CMG. After starting the day down $9.00, it’s only down $1.50 as I write. That major reversal has come in less than 1 hour of trading, and it shows you just how volatile this market can be right now. Heck, if America thinks that Charlie Sheen is volatile, then clearly they haven’t been watching the markets’ intra-day moves lately. When it comes to a “juggernaut,” stocks like CMG, CRM, FFIV, and NFLX take the cake.
Because of this, we’re adapting our trading to have tighter stops, shorter time frames, and only playing the best support/resistance levels. If a play doesn’t move our way quickly, we’ll close it and move on. Until the trading environment changes, this is what we must do. Believe me, this slight tactical adjustment is critical in this market.
And as always…
Lock and load!