Friday, December 3, 2010

Looking at NXPI...

Of all the stocks in my watchlist, only NXPI is acting as I would like. It has broken the $14.00 level and hit new all time highs. I could have gotten long at the break out of $14.00 since it pauses nicely below $14.00 for about ten minutes before a clean break out. However, I do not have any day trades left. So if the break out failed I would have been forced to hold onto a losing position which can still happen but is far less likely after an intra day trend has developed.

So now I'm looking for a clean pause on either the 5 min or the 15 min chart to get long the Dec 18 $12.50 Call Options which I will hold for the entire day since I cannot day trade anyways. If the breakout fails then on Monday I will be looking to do damage control. On the other hand, should the breakout work then I will simply manage the position off the hourly and 15 min charts.

Good luck and good trading!

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