A subscriber wrote this morning regarding using in-the-money options to take swing trades overnight. I will write an article over the weekend and put it in the knowledge base.
Let's update our picks from yesterday.
MAXIM: Originally, we played MXIM for a breakout, and when we didn't it became a candidate to move to the other edge of the pattern. While it's been interesting, scalping a stock trading in an ever-narrower range is not the mission here, so we'll drop it for now.
NEWMONT MINING: After a five-day crazy upswing, stalking a quick hit and run short sale on a swing basis was a no-brainer set up on the December 3 doji/small range day. We planned for it to be a one or two day hit and run trade, mainly because any move down would be considered a pullback in an uptrend, and we do not want to be in the way of buyers if they come out for another push up.
At this point, those of you who want to make a high-risk BUY on NEM could use yesterday's high as the alert trigger to enter a swing trade on the long side, with the initial upside target of $50.28, the December 2 swing high. The setup here is a bull flag, bar two in a directional uptrend.
NEWMONT MINING: Intraday on the 15-minute chart, we saw NEM just collapse. Between the alert trigger price and yesterday's low, NEM was down over a buck, and I just took the easy money. Was just too tempting.
XILINX: Was stopped out on this one at our planned stop loss.
That's it for this week. Will write the article and post it on Monday morning.
03.12.05 10:18 #