Getting on the Same Page

Maintain ABX, FDG, & MOS

By Bryan Bottarelli
Tuesday, May 06, 2008 9:58 AM EDT
Tue, 6 May 2008 13:58:00 GMT

Dear Bottarelli Research Member,

Last week, the major market averages rallied while the top commodity, energy, metals, and agricultural plays aggressively sold off. And so far this week, we’re seeing the exact opposite situation — as the major market averages are selling off while the top commodity, energy, metals, and agricultural plays are rallying.

Just imagine the strong upside we’ll see when both of these groups decide to engage in a rally on the same day!

As you can see below, the Dow is opening today’s session with another round of weakness — which has carried over from yesterday’s selling pressure at the 200-day moving average. But to my eye, this weakness does not appear to be scaring anyone. Rather, I get the sense that investors are welcoming this momentary dip — because they’re viewing it as an opportunity to buy.

INDU

Therefore, let’s continue to hold our MOS May 130 Calls (MTJ EF), our ABX June 42.5 Calls (ABX FV), and the remaining half of our FDG June 65 Calls (FDG FM). Any forthcoming strength will offer all three positions the boost we need to lock in nice returns. And in the meantime, I’ll continue to scan for potential new play opportunities. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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