Our Holdings (Daily-Charts)
Above chart featured on the previous article on 1/11/15
Yesterday at 1:21pm CT, we’ve decided to close most of our call-positions to preserve the gain. We have been holding the positions since the mid-December so it has been a good 4-months of position trading. As of today, there is nothing bearish about this stock except that we do have certain insinuations in the short-term for a possible pullback (which I have covered latter of this post).
Since our engagement back in mid-December, daily-50EMA has even’t been touched so that might the level it might wants to retest if this thing is indeed pulling back. This position has been the most well-performing position in our portfolio in the first-quarter, and we look to add more after a sizable pullback as I think Boston Scientific (BSX) still looks very much bullish in the intermediate and primary term.
ER is on April 27th after close, and I am not sure how much it will move from this point on until the Earnings report; and that was another reason why we felt incline to close most of our positions, and wait until after the fact.
Cautionary Signal (Daily-Chart)
So this chart tells us that there might be some clandestine sellers currently who wants to take their gain and slowly dissipate. So this bearish divergence might be another sign that there might be some kind of weakness or a pullback on Boston Scientific in the near future. I don’t interpret this sign as a “signal” to short but a “signal” to be cautious.
All in all, we’ve been very satisfied with Boston Scientific’s performance last 4-months, but I am afraid that the steam might be running out in the near term. ER can definitely re-ignite and jump-start this thing once again; so I think the best strategy right now is to wait until after the ER.