Trade Update: Stopped Out of Best Buy

On Friday, I sent you an alert to preserve our gain on Best Buy, which was retreating from our 50% gain on the same day we entered the trade.

This stock was more volatile around earnings than most, whipsawing over two days from a double-digit surge to a sharp decline. We put a stop in place on Friday to follow our strategy of preserving gains when they come.

That stop was triggered near the end of Friday.

Most of your stop orders have likely been filled by now. If they haven’t, go ahead and exit at the market, because I will no longer be following this position.

For us, this is officially a 12% gain on the entire position in just one day.

While it’s not a phenomenal return, it is a quick gain during a volatile trade, which we’ll happily walk away with.

We still have two open positions, with one more possible trade coming up tomorrow. We are near breakeven for both of our open positions, Autodesk (Nasdaq: ADSK) and Caterpillar (NYSE: CAT).

I’ll keep you updated on these positions and let you know when it’s time to take action.

Regards,

Chad Shoop, CMT
Editor, Earnings Drift Alert