Closing Day Notes

Another 500-Point Swing

By Bryan Bottarelli
Thursday, October 23, 2008 3:37 PM EDT
Thu, 23 Oct 2008 19:37:00 GMT

Dear Bottarelli Research Member,

As we close today’s session, we witnessed intra-day moves that were quite un-tradeable. For example, the major market averages began the day with a 240-point gain. Could this be another 900-point upside day? Not so fast.

Before you could even run a few chart scans, the major market averages completely gave up this entire move — and traded 250-points in the red. So there you have it, another 500-point intra-day price swing.

This reversal looked like the Dow broke support at 8,300, which meant that a move down to 7,800 was easily in the cards. But once again, not so fast.

Just as quickly as the markets reversed to the downside, they once again reversed to the upside. As I write, the Dow is only down 50 points going into the final 30 minutes of trading. I don’t know about you, but my neck hurts from all of this whiplash.

DIA

With moves like this, it’s best to remain on the sidelines. Going into tomorrow, we could play another round of DIA puts, as I don’t expect to see traders holding positions going into the weekend. But we’ll make this decision once we see how the markets open tomorrow. Until then, have a good evening. And as always…

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 October 2008