SOLD -4 DELL 100 DEC 08 13 PUT @1.29

[caption id="attachment_609" align="aligncenter" width="500" caption="DELL"][DELL][][/caption]

[caption id="attachment_610" align="aligncenter" width="500" caption="S&P 500, TICK, and Advance-Decline line"][S&P 500, TICK, and
Advance-Decline line][][/caption]

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.

[DELL]: http://traderpau.files.wordpress.com/2008/11/2008-11-05-dell.png [S&P 500, TICK, and Advance-Decline line]: http://traderpau.files.wordpress.com/2008/11/2008-11-05-spy_intraday.png