AIG will go DOWN
$30.00 on 1/18/10 (57 days left)
$35.10 (-18.75% from time of market call)
The great jump in AIG has been good but It's now time to take profits. And that is exactly what is going to happen. The volume has been too low and I believe that once it comes back it's going to be on the sell side this time not the buy side. The Williams% hit the overbought one last time at the beginning of Oct and has been trading down since then. The MACD has been semi-bearish for around a month now while the stock has been trading in a tighter range. Volume is down huge from the days of the spikes (over 100 Million less shares even when the price was lower and more shares were cheaper to buy) The Relative Strength is dipping down from its highs slowly. The chart looks like an upside down Cup and handle (pouring the money out) instead of the Cup and Handle we all love to see on our long positions. The Calls have been bought up extremely high leaving the puts cheaper. Now it looks like some buying in the Puts has been occurring. This is a very bearish signal. If AIG breaks below $30 which i believe is very possible it could head back down well below $20 in a heartbeat. Get ready and don't be on the losing end. If you lost money shorting AIG as it rose I'd be first in line to try to make it back. Those who made money as it rose cash in and flip to the short side.
I found some grammatical errors and since updown doesn't let
you edit I decided to re-post it as a comment.
The great jump in AIG has been good, but It's now time to take
profits. This is exactly what is going to happen. The volume has
been too low, and I believe that once it comes back it's going
to be on the sell side this time, not the buy side. The Williams%
hit the overbought one last time at the beginning of Oct and has
been trading down since then. The MACD has been semi-bearish for
around a month now while the stock has been trading in a tighter
range. Volume is down huge from the days of the spikes (over 100
Million less shares even when the price was lower and more shares
were cheaper to buy). The Relative Strength Index is dipping down
from its highs slowly. The chart looks like an upside down Cup and
handle (pouring the money out) instead of the Cup and Handle we all
love to see on our long positions. The Calls have been bought up
extremely high leaving the puts cheaper. However, now it looks like
some buying in the Puts has been occurring. This is a very bearish
signal. If AIG breaks below $30, which i believe is very possible,
it could head back down well below $20 in a heartbeat. Get ready
and don't be on the losing end. If you lost money shorting AIG
as it rose I'd be first in line to try to make it back. Those
who made money as it rose cash in and flip to the short side.
podellscott
