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Old position: With the Dow at 10,600 (ie DJX at 106.00)
Long Jul 108 c
Long Jul 104 p
Paid $3.25
Adjustment today: With the Dow at 10,440,
Bot Jul 106 call
Sold Jul 108 call on a spread.
Paid 75 cents.
Total position cost: 4.00 (equivalent to 400 Dow points).
Reasons:
a/ Brings call side closer to current price
b/ 10.6 is a cluster of ma''s, so if it rallies there is good breakout
potential
c/ 10.4 - 10.2 zone is a cluster of swing lows and bottom of triangle so if
it breaks there is good breakdown position.
Backup alternatives:
a/ If it flatlines, I sell 105 straddle for $5.00
b/ If I still don't like it I roll to Aug. As long as this chart pattern
stays unbroken, I keep taking potshots at it.
Unlikely to stay this way, all you Energy Pointers will make it move <g>
Chart attached. No other index positions.
Gitanshu
Attachment Converted: "f:\eudora\attach\snap71.gif"
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