Add MHK Puts Now
Two Breakdown Candidates
PLAY: Buy the MHK February 35 Puts (MHK NV) at or under $3.50, good for the day. Place a protective stop limit at $1.60 and a pre-determined sniper sell at $5.00.
Dear Bottarelli Research Member,
As we begin the final hour of trading, the Dow is hitting its lowest levels of the day just underneath the critical 8,000 level. Because of this weakness, we have two new chart formations that could signal a pending price breakdown — and I’d like to act on one of them right now. That company is Mohawk Industries (MHK – NYSE), one of the global leaders in floor covering products like ceramic tile, porcelain tile, and natural stone.
As you can see, the stock has just broken below its 50-day moving average, which could spark another $10.00 downside move. Let’s get positioned to ride this weakness using February puts.
PLAY: Buy the MHK February 35 Puts (MHK NV) at or under $3.50, good for the day. Place a protective stop limit at $1.60 and a pre-determined sniper sell at $5.00.
At the same time, we’re also seeing a potential breakdown in shares of Energizer Holdings (ENR – NYSE), the maker of batteries, flashlights, and men’s and women’s wet-shave products. Similar to MHK, if shares of ENR break below their critical 50-day moving average, you could see a $15.00 down-move.
Therefore, I’ll continue to follow this play leading into their earnings announcement on January 27th. Until then…
Lock and load!
Sincerely,
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