****NOTE: We gave K the room to the 200 DMA so no reason to second guess if it will hold or not-positioned size accordingly
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Existing Position: K: Long 67.64 ATR: 1.27
Name of Instrument: Kellogg Co.
Current Price: 66.30
Sell Stop: 65.19
Reason For Trade: Those of you who are new to the service, I featured Kellogg as a top pick for a long. At the time, I told attendees that I wanted to see K clear the 50 DMA. So true, I bought ahead of that in anticipation that it could clear because the slope on the overhead 50 DMA is inclining. Using the law of attraction to major moving averages theory, that gives this a high probability that it will reach and hopefully breach the 50 DMA. On the weekly charts, I used the 65-week moving average to determine our risk. That also breaks the 200 DMA should this fail. With a 2 ATR of risk, we are giving the trade room to mature, however, I will move the stop up under the 100 DMA (now at 67.06) well ahead of our stop if K cannot get going. The all-time high in K is 72.34 made on October 22nd. It declined after reporting the 3rd quarter earnings results. If you are an active trader, if K can close over 70.00 the odds increase exponentially that it can make new highs with an overall target of close to $80.00
First Profit Target: We will have 2 ATRs if it gets to 70.00 and will go to a no loss stop then. At 3 ATRs or 71.24, we will take off ½
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New Position: JO: Long 18.67 Held double bottom (actually a re-entry after our exit at 18.72) ATR: .46
Name of Instrument: iPath Bloomberg Coffee ETF
Current Price: 18.72
Sell Stop: 18.44
Reason For Trade: Simple. We never got stopped out on the premise of the original trade-the potential double bottom at 18.47 made in September. Although we exited at 18.72 earlier this week, with our re-entry at 18.67 we keep the stop the same and play out the trade. Please expect some update on Friday about this position through email/text. The original text: A very different trade, we are not buying on the basis of a phase change as it is currently trading under the 50 DMA. However, we are looking at a possible double bottom for 2015 with a stop under the recent lows.
First Profit Target: TBD
