Maintain Positions

More Selling Pressure Tomorrow?

By Bryan Bottarelli
Wednesday, November 05, 2008 3:36 PM EST
Wed, 5 Nov 2008 20:36:00 GMT

Dear Bottarelli Research Member,

Going into the final 30 minutes of trading, we’re finally starting to see the downside move that I’ve been expecting. And as you can see from today’s Dow chart, the big red candlestick formation indicates that we could have further downside action to close out the week. Therefore, maintain your DXD November 65 Calls (DXD KM), VZ November 32.5 Puts (VZ WZ), and BA November 50 Puts (BA WJ).

INDU

At the same time, I want to also maintain some exposure to the upside. I continue to feel that shares of U.S. Steel (X – NYSE) have yet to experience the upside recovery enjoyed by most other stocks. And despite an intra-day reversal, DRYS continues to look good going into December. Therefore, continue to hold your DRYS December 22.5 Calls (OOC LX) and your X November 40 Calls (X KH).

If and when it’s time to act on any of these positions, 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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