Hello Chen: As u know I picked up puts late yesterday, @2-7/8,
some were about noon this sucker hit 53..I was looking..the puts
went to $4 I hit sell at market, web was slow they didn't get
there in time she bonced back up and I wound up with 3-1/4..
the candlestick had a long down tail, this was what they call
a bearish harami ( small black day complety inside the previous
white day ) ..harami meaning pregnet ...her top today never got
above yesterdays close..she found support at 53..and bounced off
it but failed to rally..at the end of the day they did the same
thing as yesterday ( gaped her up )..you can see it plane as day
on the interday chart..her close was weak..( proped up ) I expect
her to test that 53 hard tomorrow. The bid/ask on the puts at
close was 2-3/4 2-15/16...I'm going to be bidding on the open at
2-7/8th again..if I get em I get em..but she could fall before
they come to me..in that case I'll wait and see if the support at
53 can hold..as if she breaks that she will back fill the gap ups
they gave her last week at 50, if any bad news hits her at this
time she will get in troble..with all the buy recomendations she
is having a hard time of it. I'l also be watching the SOX index
I have learned not to go aginst that no matter what else I think
It don't always save your butt, but in daytrading going aginst it not wise at all, long or short, go the way the SOX goes or pass, that is with tech issues..no one likes to buy a stock and 20 min latter
it's lower..but they often don't look at the market sentiment..
and consider how it might rub off on their baby..as it often does
the SOX is the best for techs..it must be going up for me to buy
long..(( or going down ( at least stalling ) to buy puts..its
crazy to buy puts if the SOX is flying up..you get caught in
reversals to easy going aginst it.
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Other factors beside the point that AOL has pushed into her profit
taking range, is the bonds ...they are paying over 7%..if money
starts flowing to the bonds..this sector may have seen it's top
for a bit. There has been times AOL has bucked the market trend,
but not when she is 20% above her 50 day moving average..only a
nut would not take profits, and pick her up on the bounce.
In spite that you can make 20% every 50 days there are some nice
buy and hold types that listen to the spam of the promoters who
tell them buy and hold , but they themself are in and out faster
than anyone. Keep an eye on the bonds, 7% or better spells troble
for stocks.
BTW I got word now from two seperate brokers..who I'v made friends
with ( that the brokerage houses are the bigest stock shorters in the market ) They have the data to make it like a cinch, and can cover at will. They can't short on the down tick..but they never get sqezzed..as they have the power to make their buy backs before releasing the orders of clients, it's like they are in the front of the line any time they want to or need to be..it's a conflict of interest but they have kept any laws aginst it from being passed, so it's all nice and legal.
Wall Street has the biggest and most powerfull lobby in Washington,
and they even brag about it on CNN.
When people cry about short sellers they should go ask their broker
how many shares they have short..in a lot of cases were you can't
get shares to short , it's because the broker is using them all. <G>
My timing yesteday coming out of thoes funds was right on the head
LX lost .06 today..nd SX stayed even..but they will trend down
for a bit now..the run up has been to fast.
Jim |
