A quick update on my trade of EWT. As predicted, we saw a gap down on EWT from the get-go and then basically drifted sideways for the rest of the day. As I am looking at this trade on the longer time-frame, I am not exiting my short position here, although I do see a bounce coming on EWT as it is quite oversold now. Signs of weakness in EWT (places to consider going short if it acts as resistance) are at $9.84, a short ambush from the gap high, to the lows of the day; $9.94, a 50% gap fill, and $10.15 as a full gap fill. As you'll see below, I also put in a channel, and we basically dropped out of that channel early in the day, but wiggled back in by the end. I see the $9.90-$9.94 as a decent area of resistance where shorts could be added.
As it is OpEx this week, I don't see EWT moving much more lower than where it was today. For target prices on the short-term, I see $9.25 and $8.75.
And lastly, the Sept 09 Puts, $10 Strike now trading at $1.00/$1.15, bid/ask.
Posts
No comments:
Post a Comment