Market Sell off Closed AZO calls, RFMD + 25%

After a bounce yesterday, the markets opened down big on news of a Portugal bond situation and talk of the end of QE.  Pre-market every thing was very, very  red.

Preservation of capital time. 

I knew this meant AZO would pull back and would not breakout today.  As my call position depended on a breakout today or at least movement toward that direction, I knew I needed out. So I got out at the open.  I used to the increase in Vol. to get a better price and got out at .60 for a very small loss.

Likewise, I decided to get out of RFMD.  There was a bid Pre-market that I felt would be at least .10 higher than it would open so I hit it and got out at 9.47.

RFMD is a position I've had for several months and the chart shows why:

I bought at $7.47 on March 5.  and sold @ 9.47.  So I end up with a 25.8% gain on the trade.  Obviously, there was a very nice trend.  I got a little hesitant as there was a lower high.  From a fundamental side, RFMD will soon be merging with TQNT the new company will cut a lot of overlap and it will be an interesting one to watch.  That being said,  I would anticipate that there may be some "final period" issues that will be reflected in quarterly earnings and growing pains as the companies merge. I don't see this position as one that I would be able to hold to next march without a substantial risk of a pull back.  For that reason I'm outta here. 

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 )