Monday, June 16, 2008

Trade Alert: LEH JPM

There are all the reasons in the world to short Lehman Brothers. The stock is forming a lowre high as it crashes into its 8 day EMA on anemic volume. But Goldman Sachs reports tomorrow and the plungers did not hold this market here just to let Goldman disappoint. We will wait and let this one rally itself out, then short into the rally failure.

Keep in mind there is no way the plungers will let the FED raise rates. That puts our ACE in play, namely gold (GLD) silver (SLV) and oil (USO) or DIG. Keep your powder dry.

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