Thursday, May 10, 2012

Leading Indicator Sotheby's Down Big (BID)

BID is down 4.15% to $33.97. As we pointed out last week in "What's Trading? Sothebys -4.94% (BID)":
Not a good sign for the larger market.*
From What's Trading:

Sotheby’s (BID) is down $2 to $37.10, even after the company auctioned Edvard Munch’s “Scream” yesterday in a record $120 million auction for a work of art. One player in the options market might be adjusting a position in BID, as it appears that 2,900 May 42 calls were sold on the auctioneer at 35 cents per contract to buy 1,350 May 39 calls for $1.10. The activity in the 42s, which are 13.2 percent OTM and expiring in 16 days, might close. The May 39 calls appear to be a new position, perhaps on the view the stock will recover today’s $2 loss and a bit more through the May expiration....MORE
*Do note the dates of the peaks and the possible Head-and-Shoulders of the current run:
Chart forSotheby's (BID)