Alerts & Commentary
Alert – RMBS
RMBS
It looks like today’s action could be the technical breakout (BO) we’ve been waiting for. RMBS has broken through its 200-Day MA ($16.18) AND its 50-Week MA ($16.53).
Very good volume also for a normally very low volume day. We see many large lot trades which indicates that there is significant institutional accumulation going on while most of the big money is still absent.
Very good signs indeed. We may be nearing another substantial Add-On, or Entry, opportunity once RMBS confirms today’s move above these significant resistance levels. That could come early next week, even perhaps Monday.
Watch RMBS‘ price action into the close closely but it appears that there are a few big players making significant Add-Ons to their RMBS positions right out of the gate in the New Year.
A very nice little Happy New Year gift o all of us in this potentially monster trade of a lifetime. I am traveling today but next week should be very interesting indeed. Everyone get your dry powder ready, the RMBS hour may be approaching quickly.
For anyone who may have itchy trigger fingers, we still like the JAN 2010 – 20/50 Call Spreads for ~$4.50. We also like, as OTM Spec Trades (Mad Money), the JAN 20 Calls @ ~$.60 and the MAY 40 Calls @ ~$.85
Coach BD
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