I was planning to do a nice Overnight Trade of the Day for you all today, but I really cannot find any options that stand out to me as truly exceptional. Almost every reporting company seems too overvalued for my liking. In fact, I would think about some short sale overnight options in a couple companies before buying. Yet, I cannot find anything that I want you to put your money into for today.
Therefore, I will provide us with just a quick update of our current positions and how we are doing.
Advanced Micro Devices Inc. (AMD) – We got into AMD with our Play of the Week on Monday at the price of 9.42. We liked this trade because I thought it would get buzz from the earnings it was releasing on Friday, the fact that Intel was releasing earnings on Tuesday, and the fact that the company had a 944% earnings beat last quarter. We were looking for a 3-5% increase for an exit, and we are very close to that 5% exit at 9.99. The stock has a hit a high today 9.96. I am holding for that 5% gain pretty confidently. Worst case, I will exit around 4% which, is 9.89.
Direxion Daily Real Estate Bear ETF 3x (DRV) – This ETF was just a mistake. Our Buy Pick of the Day on Tuesday was a bust. We got involved with DRV in the morning at 7.85 and quickly got stopped out for a 3% loss at 7.62. The ETF declined despite the market’s decline in the morning. Honestly, I do not understand this one. The ETF seemed to be just too underwater with too much seller interest.
The Talbots Inc. (TLB) – The clothing company was our Short Sale of the Day for Tuesday. We got involved in the morning at 15.55 and exited at 15.09 for a 3% gain. The stock continued to fall throughout the day and was worth over 7% in gains. The stock was a great Short Sale because it was a low volatility stock moving up 7% in pre-market trading, which signalled that a lot of buyers were going to be making a quick exit on any pop. We played the reverse and made some money.
2/3 this week is pretty good. I will be in tomorrow to get you the regular two plays for the day, and I apologize that I could not locate a proper Overnight Trade.
