Today I entered SMH for a bullish trade. The markets lately have been just trudging sideways, however today they were quite strong and made some recent new highs - all on a Friday.
This means that the bulls are fairly strong since they are buying the market right before the weekend. Weekends can be tricky because who knows what kinda news is going to come out of them. In an uneasy choppy market, it's better to wait until Monday before entering once the dust settles from the weekend rather than getting in on Friday. So, this is a good sign for our bullish trades.
I like SMH for a few reasons:
1. It broke resistance
2. It broke above the recent highs - which coincided with the resistance
3. It did this on a nice bump up in volume
4. The overall markets had a decently bullish day
I'm not looking to make millions on this trade. I'm actually just looking for a very quick move up to the next level of resistance. This could actually happen in just one day - by Monday. The overall ROI will most likely be low, but as long as I can get a profit in just a couple of days then I'll be happy with it.
I bought the Nov 27 Calls for $1.81, so now we'll just wait and see what happens.
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