BOUGHT +1 FRO 100 NOV 08 35 PUT @4.20

Frontline Ltd.

I covered my short put shorted at $3.90 this morning for $4.20 now. Fee $7.5. A loss of $45 including commission. The intraday upmove lacked volume as you can see on the left graph. Furthermore, S&P failed to break 920 and is struggling at the 900 range.

I think I will wait for FRO to clear the triangle (right graph) before committing again. It is too close to the neck line at $30.50 for comfort, because it could very well break below at this point. Again, because today’s price volume action lacked enthusiasm.

However, I am keeping my SAP position because that graph shows accumulation price-volume confirmation. And I’m barely down in that trade (i.e. SAP is holding on despite market weakness).

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