All, today was a time to buy Intel and MSFT again - maybe
more for traders than investors. The three major market
averages are heavily overbought now and it shouldn't be much
longer before that correction starts. We have had the
pullbacks early during the past two days and then the
markets have rallied back into the close. IBM's earnings
came out and not too badly. Now, CPQ and TXN will be next
along with some other techs.
Early this morning when Intel inched up to 146, it was
obvious that it had made a higher high and held its lows of
the day before and was ready to resume its way upward. MSFT
of course followed along and did quite well. CSCO went up
well and then sold back to end up not much. SUNW is still
strongly moving up and now only has its all time high of 35
1/8 to beat. But the overriding things here are the
overbought condition of the 3 major averages and how people
play IBM tomorrow. One thing for sure, many times when IBM
does do well in its earnings, it has usually responded well.
Again, though - those overbought averages pose some question
as to whether we can continue much more. Those protective
puts need to be in place shortly, if not already.
If we can continue to have a decent day tomorrow (Wed), I'm
looking for Intel to attack their all time high (at the
least). It would seem that MSFT ought to be running out of
gas here shortly; and possibly CSCO too. Both of them have
come up lots of points lately along with SUNW and many
others. So, into tomorrow we go; hope it's a good day for
all. Good trading. Jack
ADDED: Tiger, I used to use IBD's Daily Graphs Option Guide which listed all the volatility numbers for optionable stocks - the Beta and so on. However, at this point I've been in this business for so long trading almost exclusively the tech stocks options that I don't even refer to it anymore. I know how volatile they are just because I've been in them so many times.
jmac, CSCO is near my initial target right now with 80 the next one. But, may not get to wait that long before taking profits on this go around.
Mike D, but the MMs always take the premium back out of the options just as I get ready to sell them (gg).
Gary, Shucks, you mean Catskils wasn't you (ggg). At any rate, it sure was some tale. |
