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Michael Michaud
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Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
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  • Easy Retirement System Trade Alert Updates 0 comments
    Jan 25, 2014 7:09 PM | about stocks: GME, FDO, BKS, BBY, ULTA, BIG, SHLD, FIVE

    Easy Retirement System Trade Alert Updates: How to Trade Now by Market Authority

    We continue to hold all open positions…

    We see no reason to exit anything else at this point.

    All open positions are expected to pay off long before their expiration dates. We're not concerned about any of the pullbacks we've seen following a 615-point swing in the market. Dow dropped about 350 and recovered 150. It fell another 113 today.

    We just have to wait out the insanity.

    These swings have happened within the first 21 days of this New Year.

    Our updates today are for those of you that are 1) new to Easy Retirement, or 2) requested or want to buy more of our big-name trades at lower levels.

    If you'd rather just sit tight with your open positions without taking further action right now, that's fine, too. All trades - new and old - are expected to pay off handsomely long before any expiration dates.

    Since we officially launched the Easy Retirement System on December 11, 2013, we've closed half of the GameStop July 2014 47 calls and January 2015 50 calls for gains of 41% and 32% respectively. We still hold the second halves of these positions at a current loss on disappointing sales.

    However, we do have another opportunity to buy GME calls on the cheap. If you're just joining us - or want to buy more on the cheap - you can buy to open July 2014 40 calls up to $4.00.

    When we initially bought GME calls, the underlying stock bottomed on RSI and MACD, mid-December 2013. The stock then ran from about $45 to about $50 before falling to new support. As you can see in this new chart, GME has again found support. MACD and RSI are again oversold.

    Stock Chart Gamestop

    The latest technical reads tell us GME could rocket higher again. Not only do we expect to see a re-fill of the bearish gap from $44, we expect for GME to resume its uptrend toward $60.

    We've also closed half of the Family Dollar (NYSE:FDO) July 70 calls for gains. In the days following that exit advice, the stock spiked to $68 a share after the company raised its dividend. Our July 70 calls moved well above $5 for gains of up to 91% on that move in the underlying stock. We see no reason to exit the full FDO position here. It's consolidating at support and could easily break higher in the near-term. Hold the remaining position.

    Our Barnes & Noble (NYSE:BKS) January 2015 15 calls are showing gains. These calls are still a buy at current prices.

    On January 16, 2014, we added Best Buy (NYSE:BBY) June 28 calls to the portfolio on massively oversold conditions. We still have this listed as a buy.

    Other positions - such as ULTA, BIG, SHLD, and FIVE - have pulled back since our buy recommendations. While we did hear that some of you took gains of up to 30% on initial spikes in these trades, we are still holding on oversold conditions.

    If you're new to Easy Retirement System, or you simply want to add more on the cheap, you can buy these positions…

    ULTA is again oversold at support. RSI is oversold. And it's at the lower Bollinger Band. We still hold the June 105 calls, which returned up to 30% gains in the first couple weeks of the trade. We still strongly believe the 105 calls will pay off quite well long before expiration. If you just joined us - or if you want to buy more of this oversold trade on the cheap - buy to open the ULTA June 2014 85 calls up to $7.50.

    Big Lots (NYSE:BIG) initially showed gains of 36% two weeks into the trade. It has since pulled back to oversold conditions again. We still hold the July 32.50 calls at the moment… and believe these will pay off handsomely before expiration. If you just joined us - or want to buy more of BIG on the cheap - you can buy to open the July 2014 30 calls up to $2.60.

    The underlying Sears Holdings (NASDAQ:SHLD) stock ran from $43 to about $50 in the weeks following our initial trade advice. The underlying stock has since pulled back on earnings. It's now oversold again on RSI and MACD. It has put in a new support base just under prior support. If you just joined us - or want to buy more SHLD on the cheap - you can buy to open the June 2014 39 calls up to $5.50.

    The underlying Five Below (NASDAQ:FIVE) stock ran from $42 to $45 following our initial recommendation. It has since pulled back, too, to oversold MACD and RSI. If you're just joining us - or want to buy more on the cheap - you can buy to open the May 2014 40 calls up to $3.20.

    In many circumstances, we are buying out of the money calls. We're doing this on purpose because we're finding a higher delta on inexpensive, out of the money calls.

    All trades - new and old - will pay off with patience.

    We bought long-dated calls and LEAPS anticipating the potential for pullbacks along the way. In this market, anticipating such moves is important… especially when the market swings about 600 points in the first 21 days of the New Year.

    Stay tuned for more updates.

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