Closing Day Thoughts

Maintain GDX, JRCC, DRYS, and BNI

By Bryan Bottarelli
Tuesday, June 09, 2009 3:12 PM EDT
Tue, 9 Jun 2009 19:12:00 GMT

Dear Bottarelli Research Member,

It’s bee a relatively slow market day, as evidenced by the Dow’s very narrow trading range between a low of 8,725 and a high of 8,803. I can’t remember the last time we had such a narrow trading range. But to be honest, this has been a welcome change today, as all four of our open positions are moving in our direction.

INDU

For example, the GDX July 40 Calls (GDX GN) that we entered yesterday for $3.50 have traded as high as $4.10 today. The weekly GDX chart shows support right below current levels, combined with metal’s propensity to shrug off the recent dip and keep moving higher. Since all of the components of the GDX remain strong, this play continues to look good. Hold.

GDX

We also have DRYS and JRCC inching higher. While both positions are still down, the JRCC July 22.50 Calls (JQM GX) that we entered on 6/1/2009 for $4.20 have hit a high today of $2.75. I continue to believe that the stock chart indicates a pending breakout over $24.00 per share, so maintain your calls. Hold.

JRCC

We’re also seeing a bounce in DRYS off the 50-day moving average. Our DRYS June 7.50 Calls (OOC FU), which we’re holding for an average price of $0.73, hit a high today of $0.50. One more strong upside day, and we’ll be selling this position for a profit. Hold.

DRYS

Also going our way is the BNI July 75 Puts (BNI SO), which we entered yesterday for $3.60. These calls traded as high as $3.92 today, so a dip down to (or perhaps below) the 200-day moving average should hand us a profit. Hold.

BNI

Aside from this, there hasn’t been too much action to report today. So on that note, we’ll follow up once again tomorrow morning. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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