Thursday, August 7, 2008

Position Update - CINF

Taking a swing short here in CINF ($28.59) as it has rallied up to the 50 day MA while the volume has died off. It would be safer to wait for a breakdown below but I'll start here and add if that happens. If it moves higher, I will get out. This is sort of a hedge on my QLGC position but also a play on possible downside here with us being stretched to the upside. I see a lot of financial charts looking like this. If this one happens to work, I may add more positions like this.

CINF
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

After this open, if we end up higher for the day, I think this market is stronger than I am giving it credit for and perhaps the overbought conditions won't matter. I am expecting a pullback soon, but nothing that happens here would surprise me. Good luck.

Tags: ,

No comments: