Two days into the GMCR July 105 trade, we were up about 35%. While I did hear some of you exited and walked with gains, we were not able to jump out.
The exit alert didn’t hit my inbox until 4:01 pm EST.
The next day, GMCR fell apart. It continues to fall apart today. We have no choice but to exit the position today.
While I’d love to issue a new buy on GMCR now, I can’t. The stock may sit at prior support just above $90. And yes, RSI and MACD are on the floor. But Money Flow has yet to bottom out. Money is still coming out.
Until MFI bottoms out, I’m staying on the sidelines.
On Hold…
After a steady stream of prior wins, we have run into some losses. Recent volatility swings are the reason why I’ve asked that you reduce overall exposure to trades these days until we begin to see firm direction.
At the moment, we hold the DECK June 80 and June 77.50 calls, the MCD June 95 put, the AXP July 80 call, the QCOM June 67.50 put, the ERIC July 11 call, and half of the PG July 80 calls.
New Trade Opportunity
After watching the market for years, I can say that we are insanely overbought. The Dow is at a new high even though underlying economic fundamentals are weak.
Money Flow is now trading sideways because no one knows what’s happening any more. It’s only a matter of time before we see a respectable pullback. I strongly believe the Dow could pull back to its 50-day moving average just under 19,700 shortly.
Consider buying to open the DIA July 182 put up to $4.
Hold all open positions. We’ll jump back into the win streak we’ve enjoyed shortly.
Ian L. Cooper
Forgotten Profits