Take ABX Profits

Lock in Modest Gainer

By Bryan Bottarelli
Friday, March 06, 2009 10:10 AM EST
Fri, 6 Mar 2009 15:10:00 GMT

PLAY: Sell your ABX April 27.5 Calls (ABX DA) at market, good for the day.

Dear Bottarelli Research Member,

As everyone expected, the U.S. unemployment rate shot up to 8.1% after another 651,000 jobs were lost in February. Since this report came “in line” with expectations, we’re seeing a relief rally this morning. In other words, the fact that the numbers were not worse than expected is acting as a bullish catalyst.

Of course, it’s anyone’s guess as to how long this upside will last. I’ve considered shorting it, like we’ve successfully done in the past. But my hesitation right now surrounds around the bank/financial stocks. Thus far today, this group is putting in a rally — and that just might be the trigger that could push the major market averages higher. Therefore, the plan for now is to wait.

INDU

In the meantime, let’s go ahead and lock in modest gains on our ABX April 27.5 Calls (ABX DA).As you can see below, ABX has put in a decent upside move, but compared to other gold stocks, it hasn’t been as strong. Therefore, let’s lock in our gains now, and avoid the risk of seeing an intra-day reversal.

ABX

PLAY: Sell your ABX April 27.5 Calls (ABX DA) at market, good for the day.

In terms of our other positions, let’s continue holding the AAP April 40 Calls (AAP DH) and the TBT April 48 Calls (TBT DV). And as always, I’ll follow up later in the session. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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