Contrary to common belief, as the U.S. struggles, the world will be forced back into finding real dollars, and abandoning the emerging markets, why? It all has to do with leverage. The dollars that circulate pale in comparison to that which is borrowed into existence to fund speculation.
We are now entering the third speculation rinse out in a decade, and this will cause a rush for real dollars. EDZ is a prime beneficiaey of this move, and I easily can foresee a revisit to new highs.
I currently own some shares, and will add on this upcoming relief rally (dollar weakness), but options are nice for some additional leverage. Right now the vol is too high to buy options, but I will sell strike 15 puts to pick up some share at a discount, and will buy Jan 12 calls OTM that will give me potential 5 to 1 return at my target price.
On a shorter time frame you can see a cup formed and now I suspect a handle before we really breakout.
Showing posts with label Shorts. Show all posts
Showing posts with label Shorts. Show all posts
Saturday, August 6, 2011
Tuesday, December 7, 2010
Three Short Candidates
A filter I like to use is when the 20EMA falls below the 50. Today three diverse candidates from my Hard Asset list interest me. They are; DO, EC, and CSIQ. The 20 is my stop if I am wrong. For me, I will probably sell call spreads on these, as it is close to OPEX and I have high cash and margin levels from scaling out over the last week. I will see what the morning brings.
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