Add DXD Calls

Play It Again With July 46 Calls

By Bryan Bottarelli
Thursday, June 18, 2009 2:19 PM EDT
Thu, 18 Jun 2009 18:19:00 GMT

PLAY: Buy the DXD July 46 Calls (DXD GT) at or under $3.10, good for the day. Place a protective stop limit at $1.75 and a pre-determined sniper sell at $5.00.

Dear Bottarelli Research Member,

The major market averages have been in the green all day long, but the gains have been pretty much limited to 60 to 70 points on the Dow. Therefore, I think we have another opportunity to capitalize on this jump by once again adding calls on the Ultra Short Dow 30 ProShares (DXD – NYSE). You see, I keep coming back to the weekly chart of the Dow, which in my view clearly shows that the Blue Chips are experiencing resistance just below the 50-day moving average at 9,000. Despite the tight trading band created on the daily Dow chart (highlighted earlier today), I think that the weekly chart formation sways the argument over to the bears. Therefore, let’s use today’s pop by once again adding DXD calls.

INDU

PLAY: Buy the DXD July 46 Calls (DXD GT) at or under $3.10, good for the day. Place a protective stop limit at $1.75 and a pre-determined sniper sell at $5.00.

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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