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Strategies & Market Trends : Shorts waiting to happen

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To: Cadaver who wrote (509)8/9/1996 6:04:00 PM
From: Judy   of 852
 
Price-volume divergence is a good measure to use to indicate a change in the trend. The trick is timing for short-term plays. Sometimes the divergence can for quite a while before anything happens. Take a look at post 3420 on the tech options thread ... for ASND the price tracked monotically with RSI ... that would suggest that today's move was totally rigged.

Everyone agrees about INTC and MSFT for flight to quality. Once HWP and CSCO announces next week and if their earnings are good, they will be receivers of the flight to quality also. However, I'm looking for a correction in the bellweathers to establish long-term synthetic options .. not for short-term plays.

Calls may be good for INTC and MSFT for sept. Depending on how the stocks are worked next week, I'll take some positions to take advantage of the fading summer rally before earnings jitters ensue.

I'll be looking at AMAT for puts. Do you have any thoughts?
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