Dull Ending

Closing Out the Week Flat

By Bryan Bottarelli
Friday, September 18, 2009 12:40 PM EDT
Fri, 18 Sep 2009 16:40:00 GMT

Dear Bottarelli Research Member,

It sure looks like one of those Friday afternoons best suited for closing down the command center early and going to play golf, tennis, bocce ball, apple picking, or whatever else you do for fun. After all, for most of today’s session, the major market averages have remained in a very tight range, which has lead to a slow downward drift in most of our open positions. Faced with this situation, I’d like to carry our plays forward into next week.

From a tactical positioning standpoint, I’m comfortable holding long exposure to oil via our DO October 95 Calls (DO JB). I also continue to like the idea of owning upside exposure to the Macau gambling sector via our LVS October 20 Calls (LJJ JS) and WYNN October 75 Calls (UWY JO), especially with each company getting ready to launch a Hong-Kong-based IPO. This should serve as a powerful upside trigger going forward. At the same time, we’re also long the agricultural commodity and solar sectors via our POT October 100 Calls (PYP JT) and our CSIQ October 17.50 Calls (GQA JW). And just as a protective hedge against all of these upside call plays, we’re also holding an ultra-short play on the S&P 500 via the SDS October 40 Calls (SSH JT).

From a chart perspective, the weekly chart formation in CSIQ, POT, and DO (shown below) all continue to look strong. Let’s use our October expiration to ride the upside momentum going into next week.

POT

CSIQ

DO

On that note, have a good weekend. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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