Last night when CMI reported bad results (missed on both Revenues and Earnings, The company also reiterated its 2006 profit guidance of $14 to $14.20 per share. Analysts, on average, expect a profit of $14.35 per share.) it gapped down, I started to analyze it further for a bearish play. Though best would have been to play after 11th candle, but there was equivalent buying and selling pressure and hence less confidence to go in. The leading indicators were already suggesting it to touch $124.5-125.5 area and true to its form it did and then bounced back. This downward move came with huge volume spike.
After it bounced back, I decided to get in for a speculative play for a very short period of time i.e. 1wks or 15-10% profit. I was filled for $1.10 for a Nov 130/135 BCS. I am looking for it to either touch 124.5-125.5 again or penetrate that level to south of it.