Maintain Positions

Hold ABX Calls, DIA Puts

By Bryan Bottarelli
Friday, October 24, 2008 3:23 PM EDT
Fri, 24 Oct 2008 19:23:00 GMT

Dear Bottarelli Research Member,

In one of the most bizarre trading days I’ve seen in quite a while, the major market averages have somehow been propped up for all of the trading session. With less than 60 minutes left of trading, the markets are now at their highs of the session.

This reminds me of the day that Bear Sterns shocked the world by accepting a $2.00 per share takeover. On this day (if memory serves me correctly) the markets closed down only 3 points. And this came after eye-popping losses in the pre-market futures. Looking back, this was obviously a prop-job, and we all know what happened over the next 2 months. Bloodbath.

INDU

Well my friends, I’m seeing the same patterns shaping up in today’s session. Rumors of a Bernanke rate cut are floating around, but I don’t think that’ll cause anything more than an hour or two of upside. So as we head into the close of trading, I want to be sure that you maintain both your DIA November 80 Puts (DIJ WB) and your ABX January 17.5 Calls (ABX AW) until next week. There’s absolutely no telling how we end the session, but whatever happens, hold these positions into next week.

Above all, have a restful weekend. Because come next Monday, we’re in store for more exciting trading action. Talk to you Monday.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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