Closing-Week Thoughts
11 Trades, 9 Winners: Not a Bad Week
Dear Bottarelli Research Member,
First and foremost, congratulations on your well-timed sell of both FLR and WYNN. As I suspected, dip-buyers stepped into the markets and completely reversed an opening-session loss. As I write, both WYNN and FLR have reversed, which means that this morning’s sell alert (that locked in gains of 34% and 60%) was timed perfectly. Great trading!
A quick look at today’s Dow chart shows that the Blue Chips are finding support right at the 50-day moving average. Going into next week, the Dow has a big time decision to make. If the Dow dips below this level, look out. As you can see from the chart below, there’s tons of room to fall. We’re talking about a 1,000-point void. On the other hand, if the Dow rallies off the 50-day moving average, this disaster scenario will have been temporarily averted (once again).
In today’s trading, the markets have certainly stabilized. This could set up a nice opportunity to scoop up some of the high-beta companies that I’ve been monitoring for attractive entry prices. But to be perfectly honest with you, considering the Dow chart above, I think the smart move is to wait on any new positions until early next week. After all, since this Monday, we hit winners on nine out of 11 trading positions. This is a great week by any standard. Since it’s a coin flip as to whether or not the markets will rally or fade into the close, I’d rather wrap up the week on a strong note and look forward to next week.
At the same time, Chicago’s losing Olympic bid casts a gloomy shadow on my personal mood, and I never like to enter new trades in a negative state of mind. Therefore, let’s close the books on a very successful trading week and start the weekend early. Maintain your AU October 40 Calls (AU JH) going into next week. And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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