Market Curiosity: Exploring Markets And Systems

January 13, 2011

Sold ACI puts due to tag of 34 EMA support +0%

Filed under: -0 to -4%, Short Puts — Jeff Fitzmyers @ 8:04 am

Sold Feb 33 puts for $1.41.

+ The whole correction has been bought so that the candles mostly have long tails.
+ Tagged the 34 EMA today and bounced up.
+ Insiders hold over 11% of shares.
+ Short interest is over 9%, enough to get squeezed.
+ Even though there was a big volume distribuion day yesterday, realitively price did not drop much.
– Weekly CCI is below monthly CCI and dropping. Not great, but bouncing off the 34 EMA is more important.
+ Experimenting with the 60 day cycle. Made a low 60 calendar days ago. Gann says this tends to repeat.

UPDATE: Jan 14th: Bought the puts back at even. When I looked at things, I noticed the stock was right at where I sold the puts.
– The stock did not open up near yesterday’s close.
– The market is up yet ACI is down on significant volume.

The market is overbought right now and I had too much doubt so I got out.

Jan 22: As of today, position would have been a loss of $100/call — or -75%.

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