A Warning

Futures Sharply Lower, Again

By Bryan Bottarelli
Thursday, March 01, 2007 9:30 AM EST
Thu, 1 Mar 2007 14:30:00 GMT

Dear Bottarelli Research Member,

This is just a quick alert to warn you that we could be in for yet another dramatic sell-off. As I mentioned in yesterday’s alert, I was not convinced that the selling pressure was over — and this morning the futures are one again sharply lower.

As one trader put it, “it’s typically the second mouse that gets the cheese.” In other words, anyone who bought stocks on yesterday’s tepid 50-point recovery looks to get punished in today’s trading. After all, the “correction” in May of 2006 lost 8%, and this week’s action has only taken us down around 3%. So as you can see, we still have a lot of room to fall. So stay tuned, as we’ll be looking to add a new series of puts to our ledger today. And we could be selling the second half of our DIA March 126 Puts (DAW OV). To buckle up, and as always:

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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