Tuesday, May 01, 2007

Bears at bay

The Dow Industrials push to a new high, frustrating a legion of bears.

AMZN Amazon has another rally day. When the earnings came out there were seven days worth of short interest. One thought is that the short covering would run out after seven days. The counter thought is that many traders shorted the gap up and will have to cover at ever higher levels. To my eye, speculative puts might be worth taking a shot, looking for a pullback towards the gap at 52, ten points from today's close.

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