NUGT didn’t work out, only up 19% before fading away

My Trade Plan Details:

• NUGT May 3 $42 calls near $1.80
  
• Stop: Close NUGT below $37
• Target 1: $42
• Target 2: $45
  

My Reasoning:

So, while I am leaning to the bearish side right now, I am ready to switch gears pretty quickly and start buying stocks again in anticipation of the next breakout if the markets do react well this week.

I am not going to get faked out by big one-day moves like we’ve been seeing.  That is how amateurs get shaken out of trades.

While it is always possible, I just don’t see a sustained rally as the most likely move right now, so I am going to stay on the defensive.

Some of the most defensive stocks out there are in strong bull trends right now.  While it is tough to buy a stock after it has moved up for a few weeks, I don’t see any reason why the trends should stop right now.

One of the biggest uptrends we have seen over the last month has been rising gold prices, and I think they will continue moving up after the pullback we saw on Friday.

If you have followed me any length of time, you probably know what my favorite trade to make is when I want to buy gold stocks…

My Bullseye pick that I want to buy this week is (NUGT) calls.

My plan for the trade is to get started with a half-sized position on the options I list below, somewhere around the target entry price.