Under the heading “No good deed goes unpunished,” on Wednesday afternoon right before the close I sent out a text calling for the sale of the FB puts, because I felt that with the close we were having, the likely move would be a gap up in the stock, hence a gap down in the puts, causing everyone involved to be taken out at what would be the low of the day. Well, I was right, it all worked out that way, EXCEPT the FB high wasn’t over yesterday’s high and the puts never traded down to the 50% Down rule trigger and finished the day $1.47, $ .38 over our sell.
The internals were just okay this morning running just even or slightly ahead until after lunch. At that point they reversed to 2:1 negative and the market got seriously worse. By the time we were down 250 we were almost 3:1 and we had a little rally but even so, the final numbers were the lows of the session at 3:1 volume and 4:1 stocks. A look at the S&P500 chart shows an almost exact double top with yesterday and both unable to make any progress beyond the failed attempt to break above the close on 9/22 of 2177.18. There is trouble right here in River City and DB literally and WFC figuratively are in the forefront. I will be looking for shorts on any rallies. CAM
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