Afternoon Update

Maintain All Positions

By Bryan Bottarelli
Thursday, July 16, 2009 2:52 PM EDT
Thu, 16 Jul 2009 18:52:00 GMT

Dear Bottarelli Research Member,

For most of today’s trading session, we’ve seen small but encouraging movements in all of our open positions. Leading into the late afternoon, the Dow has pushed 60 points higher, which is simply too much too fast. The major market averages have gained over 10% over the last four trading days, which cannot be sustainable. Therefore, I’d like to maintain all four of our open positions.

The AEM August 55 Calls (AEM HK) that we entered for $2.90 have traded as high as $3.30. One final upside push, and we’ll be selling for gains. Hold.

AEM

The AIG August 15 Puts (AIG TO) that we entered for $3.70 have traded as high as $4.25. Despite the gains in the broad markets, AIG continues to look weak. Hold for more gains.

AIG

And then we have the DXD August 46 Calls (DXD HT) and the MS August 28 Puts (MS TS), which we added to “fade” the powerful upside rally. While both plays have drifted lower, I’d like to maintain both of them. Once the momentum subsides, which should be soon, we’ll see a pullback. Both of these plays will hand us a nice return as profit-taking comes into play.

MS

As always, I’ll keep you fully informed on any new trading actions. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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