More 3x Play Candidates

FAS, TNA, and UGL Possibilities

By Bryan Bottarelli
Tuesday, March 24, 2009 2:58 PM EDT
Tue, 24 Mar 2009 18:58:00 GMT

Dear Bottarelli Research Member,

Unlike yesterday, it’s been a relatively uneventful trading day. On a few occasions today, our ADM April 30 Calls (ADM DF) traded up to $1.10, which officially triggered our sale price. Chalk up another sold 29.41% gainer!

From a technical perspective, it’s rather impressive that the bears have been unable to take a dent out of yesterday’s 6% rally. As you can see below, the Dow could be in the process of converting the 50-day moving average from a level of resistance to a level of support. But to be honest with you, I’m not willing to make such a determination just yet. Therefore, let’s continue to play things close to the vest.

INDU

As of today, we’re holding the MON April 85 Calls (MON DQ) and the QID April 48 Calls (QID DV), which position us for a move in either direction. Therefore, let’s be sure to maintain both positions going into tomorrow.

In terms of new trades, I’m really starting to like the 3x leveraged plays. In my LEAPS service, for example, we just took a 50% gain on the Direxion Financial Bull 3X Shares (FAS). If the upside pressure extends upon itself, we could play calls for a breakout above the 50-day moving average.

FAS

Similar to the 20% gain that we just made on our UWM May 13 Calls (ULG EM), there’s also a Direxion Small Cap Bull 3X Shares (TNA) that could pay off nicely on a breakout above the 50-day moving average.

TNA

I also really like the idea of playing calls on the Ultra Gold ProShares (UGL). We can capitalize on the near-term dip in gold prices to play upside calls right off the support level at the 50-day moving average.

UGL

Going into tomorrow, these are three possibilities — so keep an eye out. Should anything happen, you’ll be the first to know. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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