Free Fall

Bears in Complete Control

By Bryan Bottarelli
Monday, January 07, 2008 10:47 AM EST
Mon, 7 Jan 2008 15:47:00 GMT

Dear Bottarelli Research Member,

It’s time to close out all of our call positions. The markets are in absolute free-fall, and in times like this, any directional actions are driven 100% on emotion. When that emotion is fear, there is no technical reading or support level that can consistently pin-point the next support level. As you can see from today’s Dow chart, the Blue Chip average is on the verge of penetrating the support level of 12,800. If this happens, we’ll see a bloodbath.

INDU

Therefore, on the put side, if you still own the WYNN January 105 Puts (UWY MA), continue to hold them. These puts have traded as high as $5.00 today, so we’re once again showing a profit — and looking to add to our gains as the selling pressure escalates. But as far as all of our call positions, today’s violent down-swing has stopped all of them out. This includes our SPWR January 130 Calls (QSU AW) and our POT January 150 Calls (PYP AJ). This is a shame, because both of these positions were showing decent profits this morning — but the bulls simply cannot hold onto any sort of upside move. The bears are pouncing on every up-tick, and the downside movements are getting more and more severe. This is not a good thing. Also, if you’re still holding the FLR January 155 Calls (FLR AK), you have no choice but to close this one out as well.

I’ll be back shortly with a follow-up alert and we’ll re-evaluate the situation. But until then…

Lock and load

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From January 2008