Shorting DRQ <62, HITK Behaving Badly :/

Tomorrow I’m hoping DRQ gets under 62.  This is setting up to be a good long term short.  My risk is 2 points, so if for some reason volume balloons and squeezes the shorts, I’ll be squeezed out early around 64.xx.

Update on HITK… after today’s further decline, the stock is testing the buy point we had right around 22.50.  It’s perfectly fine to sell here at break even.  I think our next buy point will be a little lower.

I like turning phrases into nouns.

Most of my health-care / well-being related stocks are doing well today.  I expect a little run here in April.  Enjoy the ride.

Almost Family, Inc. [[afam]]

Gentiva Health Services, Inc. [[gtiv]]   … this one can move fast.

I guess Obama is starting to flex his muscles in the health care system.  Hey cool, higher medicare payroll taxes.  Did anyone else notice that mandate where everyone must have health insurance by 2014?  Say hello too…

Tenet Healthcare Corporation [[thc]]

New to watch:

National Health Investors [[nhi]]

[[mrge]]   … what, I can dream too.

Just watch out here.  It’s difficult to place long strategies as the market falls on high volume.  This could get ugly next week.  Trade accordingly.

Anyway, this is why we don’t buy on every dip, for example with HITK.    It got hit good.  HITGOOD?  The buy trigger didn’t set, but don’t get pretty and think that it looks like a better buy down here.   I’m reconsidering 23.xx.

Meanwhile, GMCR is down today which means the PUTs are getting increasingly expensive.  Get yours soon.

Gotta jet.  Have a good weekend!

Look at all that profit taking!  It came right at a descending wedge triangle.  What I like about it is that it sold off right near it’s high.  Don’t buy on the dip, buy on the rebound.  That means grab some cheap shares above the line.

Buy range:  25.90 – 26.xx

Then set the stop-loss just below the line.

Green Mountain Coffee Roasters Inc. [[gmcr]] is a coffee beast.  It’s staring 100 in the eye, and you could wait until 100 or 110 if you believe it still has gas.  But even so, if it does get that high I think the PUTs will not be affected too much since their hedge value is growing stronger.  Whatever, we want it to move big either way.

You can buy the first PUT here.  Remember to go at least 4-6 months out.  We will buy the Call when GMCR suffers high volume profit-taking.  I presume that will happen around the low 80s.

Patience.

Staying sector focused here.

One flag up found in the pharma sector (generics).  HITK finds a temporary floor.  Expecting next wave of buying in the next few days.  Massive selling in the past 2 days.  This is a higher risk play, but looks great for an intraday long or short term swing long.

[[hitk]]