Treading Water

Still No Directional Bias

By Bryan Bottarelli
Tuesday, June 03, 2008 11:07 AM EDT
Tue, 3 Jun 2008 15:07:00 GMT

Dear Bottarelli Research Member,

I wish that I had more exciting news for you this morning, but alas, the major market averages continue to give off lukewarm directional indicators that result in choppy, tight-ranged trading. The Dow, for example, still hasn’t decided whether to call 12,400 a near-term support level.

INDU

The S&P 500, which is currently showing a stronger technical signal than the Blue Chips, has yet to decide whether the 50-day moving average at the 1,375 level will be support.

SPX

And the NASDAQ, acting as the leadership index, has yet to lead the market higher by breaking above its 200-day moving average at 2,525.

NASDAQ

So as all three major market averages continue to “tread water,” we’re left holding our current positions, consisting of the LVS June 65 Puts (LVS RM), DE June 80 Calls (DE FP), PBR June 70 Calls (PMJ FN), CMI June 70 Calls (CDM FN), and PTEN June 35 Calls (NZQ FG).To be perfectly honest with you, I just studied the stock charts of each position, and I continue to advocate maintaining each play. PTEN in particular is making me smile today, as it looks like we’ve withstood the downside action and are now looking to run back above the $34.00 level. See for yourself:

PTEN

Until we receive further clarify, let’s maintain all of our current positions. Of course, if any trading action if warranted throughout the day, you’ll be the first to know. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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