Bedford's Tradecraft Intraday Update
3:30 ET September 16, 2008
Update 5
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Position
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Buy
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Current
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Target
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Stop
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Gain/(Loss)
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*5 SLB
OCT80C
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9.10 |
4.60 |
N/A |
N/A |
(2,250) |
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* reflects closing transaction
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Open Profits
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(2,250)
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(s) reflects a short sale
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|
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Market
Commentary
We are in full rally mode. Traders are
optimistic that American International Group (AIG) is about to get
fixed. Myself, I think this is all technical. Remember, Tuesday's
are "turnaround" sessions and this one of living up to that end.
Still, my guess is this is a misdirection day as market internals are still
terrible. The key level is SPX 1,207. If we can get through that
level look for a rally to SPX 1,214 in very short order. We should get
there. That being said, I wouldn't chase the tape. AIG is only one
piece of the puzzle. In the days ahead stories will start to dribble-out
as to the problems created by the Lehman Brothers bankruptcy. That is a
formidable headwind.
Yesterday's close through the
1,200 level is bringing renewed selling. That level had been the line in
the sand and it was expected that once it failed, sellers would reassert
themselves. At this stage the only thing that saves bulls is a rally back
through 1,200. Because it is Tuesday -- and a FOMC day to boot, I actually
expect such a rally.
Open Positions
Monsanto Co. (MON) is testing the neckline.
As always, thanks for
reading and feel free to drop me a line at
povfeedback@baresearch.com.
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I'm Buying
These Options Now
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Symbol
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Option
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Current
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Pay
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Target
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Stop
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None
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- |
- |
- |
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