Bloodbath!

Dow Drops 350

By Bryan Bottarelli
Friday, June 06, 2008 2:26 PM EDT
Fri, 6 Jun 2008 18:26:00 GMT

Dear Bottarelli Research Member,

My friends, we have an absolute bloodbath on our hands today — as the Dow has now dropped over 350 points. But amazingly, four of our upside call positions have remained remarkably resistant. Both NIHD and DE are down less than $1.00 and PTEN was up for most of the session before dipping into the sea of red. Even our newest play on EOG has been bouncing back and forth between positive and negative — and that leads me to believe that any sort of upside recovery next week will translate into gains for all four positions.

INDU

With less than two hours left in today’s trading, I’m not inclined to make any new trades — so the strategy is to hope that the markets do their best job of coming off their lows and show some sort of upside support heading into the close. To be honest, there really is no logical way to trade a market that’s up 200 points one day and then down 350 the very next, so let’s take comfort in the fact that NIHD, DE, EOG, and PTEN have all out-performed the losses of the major market averages today. This should bode well for any forthcoming rebounds in each position leading into next week.

So unless something even more dramatic occurs over the next 90 minutes of trading, let’s hold our water leading into next week. Have a good weekend, and as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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