Add CMG Calls
Plus: Watch ICE
PLAY: Buy the CMG April 60 Calls (CMG DL) at or under $2.75, good for the day. Place a protective stop limit at $1.70 and a pre-determined sniper sell at $5.00.
Dear Bottarelli Research Member,
First and foremost, congratulations on your NEM gains from earlier this morning.
I admit, it was slightly troublesome to go against the grain and own a shot position on gold. But the “’bandwagon” adage worked once again. That is, whenever every talking head on CNBC is recommending that you buy gold stocks, you know it’s time to expect a pullback. As it turns out, this pullback has occurred right at the psychological level of $1,000 per ounce. Perfect.
At this point, let’s sit back and let names like ABX, AEM, NEM, and even IAG (which has been a great little gold play in my LEAPS service) drift lower and establish a new support point. Then, just as everyone who bought over the last 2-3 days decides to sell, we’ll jump back into calls and ride the next upside wave! IAG chart below:
In terms of the major market averages, we’ve gotten a strong bounce off their 12-year lows since our last alert. To be honest, this is probably an appropriate reaction after setting such an unbelievable low. You can see this tick on the updated Dow chart below:
Now, if you’ve followed the markets over the last 12 months, then you know that these rallies typically last a day or two before becoming exhausted and forfeiting to even more selling pressure. Nevertheless, I’d like to carefully increase our upside exposure by adding one April call play on Chipotle Mexican Grill (CMG – NYSE).
As you can see, CMG is breaking above its 50-day moving average, which could indicate that the bulls have control of the upside momentum. Let’s ride this strength while we can! Here’s the play…
PLAY: Buy the CMG April 60 Calls (CMG DL) at or under $2.75, good for the day. Place a protective stop limit at $1.70 and a pre-determined sniper sell at $5.00.
At the same time, maintain your PCP March 60 Puts (PCP OL), KSS March 35 Puts (KSS OG), and AGU March 40 Calls (AGU CH). And keep an eye on Intercontinental Exchange (ICE – NYSE), which is starting to look attractive around the $55.00 level.
If it’s time to make a play, you’ll be the first to know. 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.
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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