Lumber Liquidators (LL) is coming back very nicely. It’s back above $34 a share. Raymond James just upgraded the stock to outperform with a $40 price target.
I’m just as upbeat on the stock, as they are. Hold the stock and the call option.
As for Coke, the stock finally bounced off the floor, as I had expected. The stock is up 88 cents on the day. I’m now recommending that you sell to close half of the KO May 40 call and half of the KO May 41 call for solid gains right now.
As for new positions, I’ve been watching Qualcomm (QCOM) for further downside. The trend is down even if we get a slight bounce. Consider buying to open the QCOM June 2015 67.50 put up to $3.50.
I’ve been a trader for 16 years.
And I’ve never seen a market this rigged or this disorganized.
One day, we’re up hundreds of points.
The next day, we’re down hundreds of points.
We’re now stuck in a directionless market that’s just bouncing inside a channel between 17,600 and 18,200 over and over again.
Unfortunately, there really is very little to get excited about in the market. Consumer spending, which accounts for a great deal of GDP, just hit a three year low. Yet the Dow is up 120 points. That makes no sense.
Unemployment is pitiful. Yet, we’re up 120 points.
Very little makes sense in the markets right now. While we continue to hold all open positions in the portfolio, moving some of your personal funds to cash is a good bet at the moment. Eventually, reality will give way to steep market declines.
Ian L. Cooper
Forgotten Profits