I would agree,
Quality semi issues will come back hard, timing when this will occur is the tough part, in light of the potential but not certainty of continued downside. It seems this market can do anything it wants at the drop of a hat. Naz did break support by closing at 4582 today, support level 4600. It would be nice to trade and close above 4600 tomorrow. Otherwise, the next target would be 4450 to the downside. I did sell off half my QQQ puts today as I believe we are in the neighborhood of a relative bottom.
In any case, I think we will see a massive relief rally once the Fed does its thing next week at the latest for both NAZ and DOW. I'll be nibbling at call options in FNM, GE and a few other quality old economy names now (financials will rock on the 1/4 rise, at least the "perception" that the rate hikes are close to being done will kick in) to supplement call positions being built in CMGI, CMRC, YHOO, probably BRCM and a few others.
At the latest, 14-21 April I will close out these options positions. Based on how I envision things playing out.
FWIW, |
