Add MOS Calls
Plus: ABX, LVS, MON, & RTH Updates
PLAY: Buy the MOS February 35 Calls (MOS BG) at or under $3.30, good for the day. Place a protective stop limit at $1.70 and a pre-determined sniper sell at $4.90.
Dear Bottarelli Research Member,
Thus far, today’s trading session is the polar opposite of yesterday’s trading session. If you recall, we opened yesterday with a big loss, only to mount a recovery and actually trade in the green by the close of the day. But then today, we opened with a big gain, only to give it all back within the first two hours of trading. Put both days together and you get the following indecisive chart formation on the Dow:
As you can see, the Blue Chips touched the 8,000 level yesterday and bounced, only to creep up to the 8,500 level today and fail. This pattern will most likely take us into the market holiday next Monday and the Presidential Inauguration on Tuesday.
Given this scenario, I’m comfortable holding all of our current positions. As you know, we attempted to sell our ABX February 32.5 Calls (ABX BZ) this morning at or above $4.40, but thus far this trade has not triggered. This is fine. Gold prices are moving higher today, and ABX is on the verge of a breakout above their 200-day moving average. I still like this position, so continue to hold these calls going into next week. If prices recover back up to $4.40 or above, go ahead and lock in your profits.
At the same time, the retail sector looks to have run out of gas right at the 50-day moving average, which bodes well for our RTH February 70 Puts (RTH NN). Maintain these puts for more downside.
I’m also seeing some strong support levels forming in the fertilizer and seed sector. As you know, we’re holding the MON February 90 Calls (MON BU), which got partially sold this morning at $2.20. If you are still holding this position, it continues to look good — and I’ll continue to follow it going forward.
At the same time, I’m also seeing a nice chart set-up in shares of Mosiac (MOS – NYSE). As you can see, MOS has been quietly inching up, and it now looks to have established a support level right around current levels at $34.00. If this level can hold leading into next week, we could have another quick-hit winner. Therefore, I’d like to use this early-afternoon downside reversal to add February calls on MOS. Here’s the play:
PLAY: Buy the MOS February 35 Calls (MOS BG) at or under $3.30, good for the day. Place a protective stop limit at $1.70 and a pre-determined sniper sell at $4.90.
And finally, I want to stubbornly maintain our LVS February 7.5 Calls (LJJ BU), which are trying very hard to hold support at the 50-day moving average. If they succeed, this position could move back into the black in no time. Hold.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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