tactical trader

This week I have been taking a look at Chubb from a short term perspective. I am very grateful to my colleague Robin who has shared her considerable insight into this stock.

CB is in a strong uptrend. It is well above its rising 50-day moving average (red) line on moderate momentum. CB dipped below the red line for a few days in October, but bounced back and continued its upward trend. CB is also above its 20- day moving average line, which began to slope down towards the red. However, it has now started to turn upwards again confirming that the bull trend is in place. The bulls are strongly in control of this stock and it has great fundamentals.

I thought about entering the trade at around the $98 mark with a short term profit target of $105 within 45 days but I am prepared to hold for 90 days if necessary.

The problem is that at $98 it is a pretty expensive stock so an option is the way in for me. There are two specific ones available, both April calls one with a strike price of $95 and one with a strike price of $100. As I don't mind speculating a bit I am going with the latter which will cost me around $300.

I will hold on until I get to the target price or my time expires (the 90 day maximum), I will only revise this if the trend changes persuasively.

I got filled this afternoon so I will keep you posted of developments.

Binexx, the order driven binary betting exchange launched by City Index in March 2004, will close its door to clients on January 16th. The exchange has recently been criticised for a lack of trading activity, with the Betfair exchange and IG Group’s quote driven binarybet.com attracting more gamblers. Binexx may also have suffered due to the more limited range of bets on offer compared with other services, and I personally never liked the Binexx software.

To replace Binexx City Index is now offering quote driven binary betting on the FTSE, DAX, Dow, Nasdaq and S&P indices where it will compete with more established services from their competitors including IG, Finspreads and Cantor Index.