I’ve been out of the loop for the last few weeks, so I have to catch you up on what’s been going on.
First, I closed out my GILD position on 8/26, selling the shares for $79.86. It was a small profit, and not the return I had in mind. I sold the position due to Mylan (the maker of Epipen) being front and center in the weekly news cycle. I anticipated a pull back in most of the Biotechs, including GILD. As of this writing, GILD is currently trading at $76.97. I think there is some longer term upside to this stock and will continue to monitor for a decent entry point.
I also added a new positon on 9/01, purchasing 1000 shares of Travel Centers of America (TA). TA operates and franchises travel centers and convenience stores. I purchased the shares for $6.81 per share. This is a stock I have traded in the past, buying it at the same range and selling north of $8. I am targeting a 15% return on this trade, but we may have to be patient.
The big news was the purchase of my NUGT position from two Fridays ago. Since the purchase NUGT went through a 5-1 split, making my position 500 shares at a price of $30.18. The stock is currently trading at $21.54, so clearly not the move we anticipated.
But, that’s the danger in trading the 3x ETFs. When they move in your favor, you can make a killing. If it moves against you, you can get killed quickly. In this case I have three options.
- Do nothing. Keep the stock and ride the wave until the trade becomes profitable.
- Add to my position, bringing down my average price. Then holding until the trade becomes profitable.
- Sell at a loss.
I am choosing to sit tight. I’m uncomfortable adding to my position at this time and I don’t see a reason to sell at a loss, either. We’ll hang tight and see what happens.
Have a great holiday weekend and happy trading…