I have decided for blog purposes that the best way to play BGZ tomorrow will be to place a loose stop loss order, that will still result in a profitable trade if it gets hit due to a large gain in the stock indexes. The entry price was 62.26.
Stop Loss Recommendation....
Place a sell "stop" order at 64.75 on the current BGZ trade.
You will typically have to choose GTC (good till cancelled) or DAY only. I would just choose GTC, that way a profit is guaranteed even if things reverse over the several days. If we do get stopped out, I would definitely be looking to re-enter BGZ at the next short-term overbought signal.
The House and/or Senate are scheduled to vote on the stimulus plan tomorrow. It is widely assumed it will be passed, and I wouldn't bet against that. But it is not a certainty. What is a certainty (in my mind) is that if it does not get passed, the markets will fall very hard and fast. Even if it is passed, that does not mean that stocks will advance. Keep in mind, it is already expected to pass. The downside risk clearly is larger than upside potential in the near term. So let's just lock in a profit on BGZ and see what happens.
Pete
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