Holding All 3 Trades – TSO, FCX, and DDS
I still contend the contrarian trade in this market is bullish. That said, there is a strong pullback risk simply associated with a short term overbought condition of the market. While some cracks in the market technical picture are beginning to appear, the market remains resilient and pointed higher. While my trades are bullish they are in stocks that are not strongly tied to market direction.
Below are simple charts for all 3 trades. My premise for holding FCX and DDS is simple…both stocks still trade above the 7 day moving average while the stochastics(39,1) remains strongly bullish. For TSO, I am playing it similarly to how I played DE, GS, and HD in earlier trades. Just trying to ride the upper bollinger band until the bullish momentum is exhausted. TSO is quite volatile and the call options have tripled in 4 days but I still expect the stock to test the $50 mark. At that point, I will assess whether to take profit. For now, I stay greedy. Lots of economic data on tap for tomorrow…should be a fun ride! Happy Trades, Jeff