Speculators: Add to ICE
Lower Cost Basis Now
PLAY: Buy more ICE February 105 Calls (ICE BA) at market, good for the day. Lower your stop limit to $0.80.
Dear Bottarelli Research Member,
Today’s movement on Intercontinental Exchange (ICE – NYSE), while perplexing, could offer thick-stomached investors a prime opportunity for a strong winner.
As I detailed before, two analyst upgrades and record trading volumes thus far in 2010, have all set a positive tone for ICE. But today, the stock is off $4.00 on no news whatsoever. As I review this situation, it looks like a blatant attempt to scare investors out of ICE so that the pros can step in and buy it under $100 per share. You see, by introducing weakness on no news, this sparks a round of panic selling which is exactly what we’re seeing today.
Despite the fact that ICE February 105 Calls (ICE BA) hit our stop, I want to maintain positioned. In fact, I want to get aggressive here and actually add to our position. I truly believe this is a fear-induced drop to cause panic selling, and I don’t want us to fall for it. For all of you aggressive traders still holding ICE, let’s use this to our advantage. On a weekly chart, ICE still looks strong, so let’s use the weakness to add to our position now.
PLAY: Buy more ICE February 105 Calls (ICE BA) at market, good for the day. Lower your stop limit to $0.80.
And as always…
Lock and load!
Sincerely,
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