Watching MON Near $70

Possible Call Play

By Bryan Bottarelli
Monday, November 17, 2008 2:57 PM EST
Mon, 17 Nov 2008 19:57:00 GMT

Dear Bottarelli Research Member,

For most of today’s trading session, there hasn’t been one single indicator that offered the major market averages any type of directional bias.

The current Dow chart, for example, looks exactly like the chart I included in your alert this morning. In other words, the bulls are saying, “prices sure are very low, but I’m still not willing to buy.” And the bears are saying, “this market could easily move under 8,000, but I’m not willing to short and get whip-sawed by another freak 900-point up-swing.” As a result of this indecision, we’re left with a tight range session leading into the final hour of trading.

INDU

Now, over the last two weeks, we’ve seen plenty of action in the final 30 minutes of trading. Late last week, we saw the selling pressure intensify. And early last week, we saw buyers come in and spark a strong closing-day rally. Leading into today’s close, it’s anyone’s guess what will transpire. Therefore, let’s continue to hold all of our current positions.

Should the markets decide to rally, I’m keeping a close eye on shares of Monsanto (MON – NYSE). As you can see below, the world’s top genetically-modified seed company has bounced strongly off the $70.00 level on two prior occasions. If the market decides to rally, playing December calls on MON could be a very strong bet.

MON

We’ll know more leading into the close — and into tomorrow.

Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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