While I do have some positions that are down, we’ve also had some great winners over the last few weeks, including quick gains on Celgene, Gilead, Harley-Davidson, and the iPath S&P Futures trades.
Those CELG and GILD calls did so well, we heard some of you took well over 200% gains on them in less than a month’s time. Forgotten Profits only took gains of 42% and 36% on CELG, and gains of 40% and 42% on GILD.
Today, here’s what I want you to consider.
One, as Exxon Mobil (XOM) begins to make up lost ground, our XOM January 95 calls are showing a solid gain.
Consider selling to close half of the XOM call trade to protect gains.
Two, after taking such great gains on CELG and GILD I’m finding that both stocks are insanely over-extended to the upside. Both need to correct from these levels. A two-year candlestick chart of CELG shows wild over-extension after a run from $85 to $107. That’s a wild move in such a short period of time. MACD is overbought. RSI is screaming, “Sell me!” And MFI is just beginning to top out.
Consider buying to open the CELG January 2015 100 put up to $3.30.
Gilead is actually beginning to reverse from toppy conditions now, too. Here, RSI is reversing off its overbought 70-line. It’s also challenging double top where it failed over the last few days before testing it again. I’d like to see GILD correct to $102.50.
Consider buying to open the GILD January 2015 105 put up to $5.
If you celebrate it, have a great Halloween.