Three New Plays
Add AKS, DV, and QID Calls
PLAY: Buy the AKS March 10 Calls (ASJ CB) at or under $1.40, good for the day. Place a protective stop limit at $0.70 and a pre-determined sniper sell at $2.70.
PLAY: Buy the DV March 60 Calls (DV CL) at or under $3.30, good for the day. Place a protective stop limit at $1.90 and a pre-determined sniper sell at $5.00.
PLAY: Buy the QID March 50 Calls (QID CX) at or under $4.70, good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $6.90.
Dear Bottarelli Research Member,
I typically don’t like to get too political in my alerts, but now that Washington has such a major effect on the market’s directional movements, I felt compelled to communicate my thoughts with you in this morning’s alert. In response, I’ve received some comments from both Republicans and Democrats alike — so let me take this brief moment to tell you that I’m not trying to place any blame. What I am saying, however, is that both parties will eventually have their shot at fixing our current economic problem. And after spending trillions of our tax dollars, I have a deep-seeded fear that neither party will succeed at fixing our economy. If this occurs, we could be in deep trouble. Therefore, it behooves us to prepare for such an occurrence. And on that note, this issue is officially put to bed.
Let’s move onto some trades…
If the stimulus bill does indeed get passed, I feel one of the first beneficiaries will be the steel sector. You see, most of the programs that can get started right away require steel, with a special emphasis on homemade steel. That’s why AK Steel (AKS – NYSE) could soon get a nice boost.
Based out of West Chester, Ohio, AKS produces flat-rolled carbon, stainless, and electrical steel in the United States. As you can see from the chart, the stock is only $10.00 per share, and is currently moving above its 50-day moving average. If AKS gets some upside momentum, we could easily see a move up to $15.00. Therefore, I’d like to get positioned in some cheap AKS calls going into March. Here’s the play…
PLAY: Buy the AKS March 10 Calls (ASJ CB) at or under $1.40, good for the day. Place a protective stop limit at $0.70 and a pre-determined sniper sell at $2.70.
Also on the upside is DeVry (DV – NYSE). As I mentioned before with APOL and ESI, the for-profit education companies move in lock-step with the unemployment rate. Therefore, as unemployment rises, so does enrollment at these education companies. And as a result, their stock values increase too.
DeVry University offers associate, bachelor’s, and master’s degree programs in technology, healthcare technology, business, and management at 91 locations in the United States, Canada, and online. The stock looks pretty firm around the $55.00 level, so let’s add calls as well. Here’s the play…
PLAY: Buy the DV March 60 Calls (DV CL) at or under $3.30, good for the day. Place a protective stop limit at $1.90 and a pre-determined sniper sell at $5.00.
And finally, I’d like to add calls on the UltraShort QQQ ProShares (QID – PCX), which moves at a rate of twice the inverse of the daily performance of the NASDAQ-100 (NDX).I’m not sure if you’ve noticed, but recently stocks like Amazon.com (AMZN – NASDAQ), Apple (AAPL – NASDAQ), and Google (GOOG – NASDAQ) have all pushed aggressively higher. See for yourself:
Now, this is a nice rally. No doubt. But it could also be setting up for some major profit-taking. After all, anyone who has a nice short term gain on any of these stocks will undoubtedly lock in their profits on any hint of a downturn. And if you look at the QID chart, you’ll notice that it’s quickly approaching a strong support level right at the 200-day moving average. In other words, the time to lock in profits on the top NASDAQ performers could be coming soon. If we see a NASDAQ pullback, the QID could bounce rather aggressively. Therefore, let’s play this bounce using March calls.
PLAY: Buy the QID March 50 Calls (QID CX) at or under $4.70, good for the day. Place a protective stop limit at $2.20 and a pre-determined sniper sell at $6.90.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.
Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.
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