ALL: Jack Rains is having PC problems and asked me to copy his Prodigy posts to SI for this week. Very thoughtful of him really:
Board: MONEY TALK
Topic: STOCKS
Subject: INTC-BOUNCE
To: BEN KRELITZ (JBFU69A)
From: JACK RAINS (WYQP23E)
Time: 01/12 3:29 PM
All: Well, my new computer is on the blink, so will have
to use my old one which doesn't give me access to internet
and Silicon Investor. I still haven't seen any reason to
change my comments from last ones made. The only real thing
that has happened since is that we had a big swing in the
indexes with the Dow now having substantially made a new
high closing. Meanwhile, the Nasdaq and S&P have also made
new highs, but their intraday highs are all in the ballpark,
In other words, I'm saying that those two indexes have not
thus far made substantially higher ground. Intel and MSFT
and many other tech stocks are still meandering around below
their all time highs awaiting more earnings reports I
suppose to come out from Intel and the others. The MMs can
still play this either direction with Intel and the other
stocks. I stand by my earlier comments that even if the MMs
take Intel up more in here, that they may bring it back to
145 or thereabouts by expiration day. In the event it is
taken down for some reason, then the 140 is more likely on
expiration day. All may recall that I sold out of half of my
long positions earlier but still retain the rest. It's
always nice to take profits on at least some of the things
and then sit back and relax on the rest of it. I continue to
hold MSFT calls (longer term) and S&P index calls picked up
some time back. Thus, I face no problems in here whatever
happens - as I have plenty of room for anything. But, I'm
still awaiting to acquire put positions in here somewhere
sometime. It's too risky buying anything else on the call
side for now. You would be buying in too high up on the
ladder as we have already had quite a rally. The odds favor
an eventual pullback of some magnitude which would dictate
the buying of short positions for a short term trade. We
just don't know whether that pullback will take place next
week or the week afterwards. Option expiration week is
usually bullish and with the earnings reports coming out, if
they are in fact good or better than expected, you
wouldexpect things to move up in short term. But, again if
one is seeking to buy calls, my opinion is that the
current rally is closer to the end then to the beginning for
sure. As I've always said, you buy your long positions going
down and your short positions going up. Not very much unlike
those who say to investors buy on the dips. At any rate, I
look for much of the same that we have had the past week or
more to continue into the new forthcoming week. All for this
day. Good trading. Jack |
