Pre-Market Alert: Global Financial Worries
Markets Set to Drop at Open
Dear Bottarelli Research Member,
Good morning. Renewed fiscal worries in Greece, Spain, and Portugal are overshadowing what should have been a positive upside market reaction to Cisco’s (CSCO – NASDAQ) news. As a result, the major market averages are set to open broadly lower across the board. Given this new wave of bearishness that’s seeping into the markets, I think we’re now forced to trim down our upside exposure. As you can see from the Dow chart below, today’s downside move (once we open) will set a lower high, which is technically a very bearish indication. Therefore, let’s prepare to bias our ledger down.
This means that it’s time to cut loose our ICE February 105 Calls (O:ICE 10B105.00) and our MOS February 60 Calls (O:MOS 10B60.00). While both positions were inching back from their lows, I fear that today’s bearish sentiment just will not be enough to overcome. Therefore, let’s take what we can and close off each position for the best prices possible at the open. Sell.
Also, be sure that you’re still holding our protective DXD March 30 Calls (O:DXD 10C30.00), which should offer a buffer for any sizable market drop.
As always, I’ll be out with further updates as the day progresses. But until then…
Lock and load!
Sincerely,
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