New Option Plays, Monday, 01/12/2009
HAVING TROUBLE PRINTING?
Play Editor's Note:
You could argue that the major stock indices have broken down from a bear-wedge pattern (not shown). The recent move definitely undermines any investor confidence that was already pretty shaky after last year's performance. I think stocks will go lower barring any unforeseen earnings miracles. However, the major indices are nearing short-term support. I expect a bounce first. Wait for the bounce to appear and then as it fades we can initiate new bearish positions.
No New Plays Tonight.
Here is a chart of the S&P 500 index: