Bought a Put Spread on the Q's based on the Fat Pitch indicator cross over. The Market Internals are 'to the bulls', so this is a contrarion play.

Grabbed a Bull Call Spread 70/72.50 using the weekly options. I only do this when we have a fast move and I want the time decay to work in my favor. Break even is $70.94 and full profit is over $72.50. This was all about a take over rumor and I am at risk of this thing reversing if it does not pan out. So far I am OK at  2 pm, as we are trading at $71.47

Looking for a bounce on Limited Brands (LTD). The Daily candle is sitting on the 200 Daily MA (simple), and on a support line (double bottom). Horizontal support is much stronger than trend line support so I bought a vertical Bull call spread. I bought the Jan 38 calls and sold the Jan 39 calls. These spread trades are much easier to stay in, versus buying a call; the volatility CRUSH is also not a big factor here.

The RSI (2 period) is also pegged at the bottom (red circle) which usually coincides with a turn.
The profit profile graph is shown beside the chart

I have a new Study - It automatically draws a Trend Line
on the chart, as pictured to the left. As soon as the trend line is borken, the study alarms you with sound and a pop-up. I like it, as it draws more accurate lines than I could have ever asked for.

You can Download the file: HERE

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As we expected, the Q's bounced hard ! Let's see what BerTankey says at noon-thirty.

I've drawn the channel on the Daily chart which tells me it is time for a move towards the upside. Not everyone trades with channels, but you should at least draw them. This will be an interesting and telling week as to where we go into the summer months. Notice the strong Horizontal support that is coincident with the channel.

As I indicated below, this image shows the Daily and Weekly charts with two studies superimposed below the candles. Tak a look at the Weekly chart, the Q's are approaching the 50 week MA but more interesting is Relative Vol and RSI. The weekly (stronger chart) is at 0% indicating a bounce; you can see that the daily tried but is sinking back. It will eventually make the move up.

Take a look at the Chart to the left; I have a Volume at Price Study as well as the Bollinger Bands, on a weekly chart. We are definately at resistance and are due for a bounce, but that increasing volume on this down leg is telling. My next post will take a look at the Relative_Volatility(7) and the RSI(7), as well as Linear Regression Channels.

Remember:  What goes up, must come down but what goes down, does not always go back up.