Monday, August 11, 2008

Getting Short Lehman Brothers - LEH

The chart on Lehman ticker LEH (above) shows a pennant that is slowly developing on light volume. I know many out there think this a low price call option on a battered financial, aren't they all? The pennant looks to be worth $12 at its widest point. Based on this a break of the lower boundary, which currently would be about $17.5 to 18, implies a downside target of $5-6. That being said a break of the upper boundary would imply a target of $32.

I am getting short 1 unit here at $19.55 with an eye on the downside and looking to add. I will also run for cover quick if $20.75 is broken.

Good speculating to you all and never ever forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Ultrashort Dow ticker DXD@ $50.12 stop at $58.62
Long 1 unit Ultrashort QQQ ticker QID @ $37.05 stop at $42.87
Long 1 unit of Powershares Agriculture ticker DBA @ $34.50 stop $32.79
Long 1 unit of XTO Energy ticker XTO @ $43.85 stop at $39.62
Long 1 unit Currencyshares Swiss Franc @ $92.70 stop at $89.27
Short 1 unit Int'l Bus Machines ticker IBM @ $129.05 stop at $131.54
Short 1 unit Sun TrustBank ticker STI @ $44.50 stop at $46.18
Short 1 unit Fedex ticker FDX @ $87.40 stop at $91.18
Short 2 units of Visa ticker V @ $71.30 stop at $75.16
Short 1 unit of Lehman ticker LEH @ $19.65 stop at $20.76

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