One fellow wrote me last week and suggested, unhelpfully, that "technical analysis is a crock."
I disagree, although it's easy to question one's faith during times like these. It was heartening to see at least one chart behave itself this morning – Lockheed Martin (LMT), on which I own puts.
I had a couple of different reasons for buying puts on LMT. The first was that the Fibonacci fans have been pretty helpful on this stock, and the price had climbed its way back to the underside of a fan line. But the principal reason was that the line at about $87 had been strong support before and now was representing strong resistance.
The stock finally began the coveted "falling away", and I'm more optimistic about this position. These are December $90 puts, and they're up about 45% this morning. I think these are keepers, and I'll keep ratcheting my contingent stop down as the position continues to move in my direction.
