SOLD -4 DELL 100 DEC 08 13 PUT @1.29

DELL

S&P 500, TICK, and Advance-Decline line

Looking like we’re oversold on the market. DELL is holding up nicely today despite the 30+ drop in S&P. So I’m putting in a swing trade with a short put Dec08 DELL 13 strike @ 1.29.

Upside: Strength in DELL shares (positive change) in light of a down market today. Up volume seems slightly more than down volume for past few days on DELL too. Broad market price weakness not supported by intraday TICK and A-D line. Short term reversal expected.

Resistance: $14 then primary at pre-crash low about $15.

Downside: DELL price still in narrow trading range. We are not on the high side in that range. General market rally not supported by volume yet.

Support: Lower trading range of $12.

Bottom line: Today’s market weakness seems unsupported based on intraday data. I entered this at about 974 on the S&P 500 after touching 972. This is a short term bullish position.

Related posts:

1. BOUGHT +4 DELL 100 DEC 08 13 PUT @1.80
2. BOUGHT +90 DELL @16.49
3. Mid-week Positions Review, October 21, 2008
4. Unloaded some more longs on this +50 points S&P500 day
5. SOLD -5 SLW 100 DEC08 7.5 PUT @4.00 LMT