It’s “Wait and See” Time
Maintain All Positions
Dear Bottarelli Research Member,
It’s “wait and see” time on the major market averages.
After yesterday’s aggressive sell-off, the Dow is a stone’s throw away from re-testing the November lows. Even after passing the stimulus package yesterday — and outlining a new plan to help underwater homeowners today — the major market averages are still deciding whether or not to officially break down to new lows (which would confirm the continuation of the bear market trend). You can see this indecision by looking at today’s miniscule price tick on the Dow:
Based on this situation, the best advice I can offer you is to simply stand pat and let the markets dictate our trading behavior. Looking at our open positions, we’re in nice position to benefit off anything that the market throws our way.
First off, a near-term top in gold prices would lead to NEM re-testing its 200-day moving average just under $40.00 per share. The moment this occurs, we’ll lock in gains on our NEM March 40 Puts (NEM OH) and transition over to calls. Stay tuned.
If the major market averages begin falling, QID has the ability to blast above its 50-day moving average. Therefore, maintain your Ultra-Short position on the QID March 58 Calls (QID CF) for more upside.
On the same hand, a market breakdown could really clobber Priceline.com, so maintain your PCLN March 65 Puts (PUZ OM) as well.
And finally, any upside move would push AGU higher, so let’s keep at least one upside call in our back pocket. Hold your AGU March 40 Calls (AGU CH).
As always, I’ll be out with further alerts as the trading session progresses. But until then…
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.
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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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