Wednesday, June 17, 2009

EWT Update

Still studying for my last final, just a chart and a few words:

From my previous post, I mentioned:

... 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, ...

And sure enough, the next day we got the bounce at the open, and hit $9.83 as the high of the day, off by 1 cent (I highlighted the area with the box). That would have been a great short entry there. The Sept 10 puts remain at $1.00/$1.15 bid/ask. Also notice that it has creeped back into the channel drawn, and so for future short entries, I would once again look at $9.84, and then $9.95. Caution on entries though, as this is OpEx week, and we might get some large whips to the upside or downside. Although EWT is not heavily traded compared to others, we might get a pin close to $10 for Friday.

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