Wednesday, July 9, 2014

A bit of a bounce. Stopped Out of GDXJ and some new action in Auto Parts. ORLY AZO

After taking a beating over the last two days the markets staged a rally.  It looks like my FB trade was just a day early as FB rallied hard today:

I thought 62 might act as support and it did. But I wasn't willing to move my stop to take the risk.  I guess you can't win them all.

GDXJ has shown great strength and my short taken during the congestion must be closed.  
Entry 40.76 closed 43.95. - 3.19.   I knew this was somewhat of a risky trade going into it as gold stocks are notorious for choppy actions and fake breakouts in both directions. So I positioned size accordingly. 1.5% loss here.

Today's break was on high volume, which suggests I should look for long plays in some of the miners included in the ETF.

New Positions:  In at 155.50.  A  very nice move out of congestion.  I'm playing this a smaller than normal so I have a stop at 151.90 . 

Since ORLY broke out I'm anticipating that AZO will follow. So I picked up some calls:

I picked up the July 550s calls.  This a high risk trade given the the option expo day. It either works tomorrow or I get out out because the Theta decay is going to get ugly real fast.

On options my risk and position size is set assuming a  $0.00 so I'm risking .05%R here.

What has me excited about both of these stocks is their monthly charts, A breakout on the weekly charts could produce some very big moves:

ORLY weekly (dynamic):
AZO (Dynamic )

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