Add GMCR Calls
Plus: Maintain GG Puts
PLAY: Buy the GMCR October 70 Calls (QGM JN) at or under $2.65, good for the day. Place a protective stop limit at $1.90 and a pre-determined sniper sell at $3.90.
Dear Bottarelli Research Member,
Good afternoon. Ever since sending out our sell alert on ATPG this morning, I really haven’t had much to talk about. For the majority of the morning hours, the markets flirted with new 2009 highs. But as the day dragged on, that strength has turned into slight weakness, as many of the stocks hitting new 52-week highs have pulled back. As you can see from the Dow chart below, the Blue Chips hit a fresh 2009 high of 9,9,31 before drifting back down. If you recall, the Blue Chips hit a high of 9,917 on September 23rd, followed by a move down to 9,430 seven days later. Is today’s failure another signal that a 500-point retrenchment is coming just below the 10,000 level?
Of course, nobody knows for sure. But the possibility is certainly there. In many respects, that’s why I recommended that you hang onto your GG October 42.50 Puts (GAG VV). As you know, we entered these puts on October 9th for $1.45, and they’ve hit a high of $1.25 today. If we see any sort of pullback in the metals markets, we’ll be back in the money. Therefore, let’s continue to maintain this position going forward. As you can see below, GG still has a void to fill on the downside. That’s why owning puts (while playing against the recent upside trend) could pay off on a daily reversal.
But to balance out our trading ledger, let’s also reload our October calls on Green Mountain Coffee Roasters (GMCR – NASDAQ). I’ve been following GMCR for most of today’s session, and it appears like $71.00 is a nice interim support point. Every time GMCR approaches this level, it finds buyers. Therefore, let’s use today’s weakness to add October calls, and reposition ourselves for another upward push.
PLAY: Buy the GMCR October 70 Calls (QGM JN) at or under $2.65, good for the day. Place a protective stop limit at $1.90 and a pre-determined sniper sell at $3.90.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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