Wednesday, July 9, 2008

Short Term Reversal

So, the bounce finally came. I'm still bearish. The market was very oversold based on daily chart. How high can the bounce go? I have established two put position on Tuesday morning, and the bulls pushed through in the afternoon! Based on candlestick chart, I have closed my put position for BAC, LM and LVS.
  • BAC (10+): This is my best ever return. I don't think that I can repeat this. Close my put because of a bullish engulfing candle at a time when the daily & weekly chart is very oversold.
  • LM (4+): Close my put because of a bullish engulfing candle that happens at the lower end of the downtrend channel. Additionally, the daily & weekly chart is very oversold.
  • LVS (4+): Close my put because of a long shadow hammer. Both daily & weekly chart is very oversold too.


MET Weekly Chart

Uptrend line has been broken. Looks like 53 is still holding. Bought put for this when 53 was breached and I was expecting that it will become the resistance.


MFC Weekly Chart

Manulife (MFC) has broken the uptrend line (there are two). Currently testing the break. Support at 34/30. Bought the put for this.

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