Dow Up 400?!

Knee-Jerk Reaction Will Only Be Temporary

By Bryan Bottarelli
Thursday, September 18, 2008 3:40 PM EDT
Thu, 18 Sep 2008 19:40:00 GMT

PLAY: Re-buy the DXD October 70 Calls (DXD JR) if your sniper sell order triggered.

Dear Bottarelli Research Member,

Today has been one of the most remarkable trading sessions I’ve ever seen. As I write, the major market averages have shot aggressively to the upside on the news that British financial regulators have banned taking any new short positions in financial stocks until January. Quite simply, I feel today’s closing-day reaction to this news is nothing more than a one-day event.

INDU

Therefore, I want us to remain our downside bias, especially when it comes to our DXD October 70 Calls (DXD JR). As you know, we entered these calls yesterday for $4.40, and some of you triggered our pre-determined sniper sell at $5.50, locking in a nice 25% gainer. If you did execute this sniper sell, then go ahead and re-buy this position. I think shorting any rally is a smart move, so let’s be sure to own this ultra-short position going into tomorrow.

DXD

PLAY: Re-buy the DXD October 70 Calls (DXD JR) if your sniper sell order triggered.

At the same time, maintain your KMB October 65 Calls (KMB JM) and your TSO October 20 Calls (TSO JD), both of which should continue benefiting from the market rally. Above all, pat yourself on the back for navigating this intense market volatility with uncanny precision. And until tomorrow,

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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