Anatomy of a Short – Day 9

BAC reached the bottom of its rising wedge this morning.  It tagged 9.32, even better than the 9.40 I was looking for.  I sold my remaining August 11 puts at 1.65 for an 83% gain in 9 days.

At 8.89, it would complete a bullish crab pattern that would also coincide with the bottom of its channel. Might take another look at playing the upside, but doubtful.

First, I don’t expect the market to make any serious advances anytime soon.  Second, if I changed my mind, I wouldn’t play the upside with BAC.

Comments

Anatomy of a Short – Day 9 — 4 Comments

  1. I think gold and the dollar are gonna rise together and people will be dumbfounded as to how that's possible.

    Pebble, sorry I haven't dropped in for a while. But I just wanted you to know that I really like your stuff. I like your vision, your attitude (confident, spirited but not arrogant) and your writing ability. It's a great combination.

    I don't know if you've noticed or not, but the number of bloggers out there who can hardly put together a coherent sentence, let alone a nicely flowing paragraph is really surprising. Some of them are borderline illiterate. lol But that's one thing you've got going for you that I really appreciate, along with all the other good stuff. Keep up the great work. I'll try to drop in more often.

  2. Haven't been watching it, but that's quite a reversal. I might get myself in trouble with fellow doomers here, but I think the dollars going to do just fine in the short run. I'm also not particularly concerned about inflation in the short run. The tech picture hasn't changed from ystdy, other than we got more of an extension on the pattern. Should make for a stronger reversal.