GE Leaves Some Nice Gaps (updated 04/04/09)

04/08/09 - Well our little break out yesterday on the close did exactly as I expected. We need to do some back filling which is exactly what I am positioned for. It does look like this stock though wants to push a few bucks higher so I will be quick to take my profits / lock in with stops.

04/07 - Watch this break out if you are short. Yes it could be a bull trap but it also could warrant a move up another 10%

But Maybe One More Push Up?

04/03/09 Back in with Puts

GE Trade Closed 3/30/09

Chart 1

Chart 2

Chart 3

04/03/09 - I started buying puts on Thursday with the gap up and added when I saw the volume on Friday plus the fact that we closed with an inside day.

3/17/09 (Update) GE closed today at $10..I added to my short position at this level. There is a huge gap that will be filled...20% below today's closing price.

3/18/09 GE enjoyed a nice 3.% pop this afternoon closing $10.32 following the FOMC announcement. Thursday, March 19th, GE host an investor meeting in NY. Their goal is to "calm" investors nerves about their exposure. Expect a lot of volatility in the next two day! I am still short via options on GE. For those that are not astute in charting, gaps are usually filled.

3/20/09 - Closed March 10 puts. Rolling into April Vertical Call Spread next week to target zone.

03/29/09 - Interesting action on GE in March. I have not covered my short positions. Chart #2 is a volume by price available at http://bigcharts.marketwatch.com/. Let's see if this plays out as I have projected. Notice the significant amount of accumulation in the $6.75 - $7.25 area, lack of volume highlighted in yellow, and significant volume that appears in the $9.75 - $10.25 area. Following a +40% gain in just a few weeks, my assumption is distribution occurred in this area. GE's earnings are scheduled to be released April 17th at 8:30 a.m.....options expiration day! I have establishes a fairly larger position of April 10,11,12 puts and sold vertical call spreads. A break of $12.53 invalidates strategy. Gaps remain open at $13 and $14.28. I believe it would take a significant push to fill these near term.