By far my favorite options position is consumer staples, symbol XLP. On Tuesday I took profits on 30% of the position because I felt it was about time for it to retrace back to its neckline. Sure enough, that’s what it did on Wednesday and I’m glad to be a little lighter. I want to be clear, however, I intend to get back in – maybe even bigger than before – once we get back to that zone of resistance. This is a honey of a pattern.
A bigger picture view:
