Closing Notes

Maintain All Positions

By Bryan Bottarelli
Wednesday, November 12, 2008 3:30 PM EST
Wed, 12 Nov 2008 20:30:00 GMT

Dear Bottarelli Research Member,

As I’ve maintained all along, the major market averages simply must re-test their lows before moving significantly higher. That’s why we’ve maintained a downside bias — and been properly positioned to profit off every red tick over the last two weeks.

As you can see from the Dow chart below, virtually all of the gains from late October’s 900-point upside move have been wiped off the board. And as we approach the 8,000 level, we’ll probably witness even more volatility. In fact, I can’t imagine anyone maintaining a long position over the next two days — so we’ll continue our tactical strategy of shorting any rally. We’ll also hitch a ride alongside stocks that look poised for further weakness over the near term.

INDU

Looking at our current positions, our KSS December 30 Puts (KSS XF) and our RATE December 30 Puts (QIB XF) are each showing profits. Continue to hold each position for more upside. The RATE chart looks particularly weak, as it has plenty of room to fill that gap on the downside.

RATE

Over on the call side, I continue to think that gold miners are at historically low values, so let’s also maintain our GDX January 23 Calls (GBJ AW) as well. In fact, I may add to this position on any further weakness, so let’s go ahead and cancel our stop loss orders going into tomorrow’s open.

GDX

We’ll talk again 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 November 2008