Intel should gap up tomorrow morning pretty well - barring any unforseen news coming out between now and then. Whether it stays up is a matter of conjecture. Any pullback from the gap up which moves at least 2 ticks below today's close would ordinarily be cause to move on out for sure, if not before that. On the other hand I suspect that the MMs are well aware of this game by now (as they too read these posts) and could conceivably pull one off on us. It goes without saying, but I'll say it anyway (ggg) - Intel will need to be watched closely tomorrow to see if it is giving any indication of running out of steam. It has been much stronger than the rest of the markets for months now.
As far as what price the MMs will bring Intel down on Friday's expiration, it is still up in the air. If Intel closes well up tomorrow, then 130 is definately out of the question and it would come down to 135 and 140 as possibilities. On the other hand, if Intel ends up the day not up very much or having come back down some, then the 130 and 135 would still remain as the possibilities.
Support for Intel is at 133 and resistance overhead is virtually nil, although something in the order of 137, give or take a little, could stall things up some.
Although the Nasdaq was up well and the Dow and S&P were up; there are still a number of things to be resolved. For instance, not any of these 3 major indexes went higher today than they have went the last few days intraday. Thus, until they do in fact go higher, I'm going to watch things a whole lot closer in here.
Whether put accumulation is warranted beginning tomorrow will be determined by these indexes and the major tech stocks ability to go onward (or just seemingly running into severe distribution). I would expect professional traders who specialize in shorting and covered their shorts going down are probably getting ready to reinitiate their short positions in the next day or two. You had a number of really good tech stocks that didn't participate all that much today in this rally and that skewed some of the technicals as well.
In conclusion, I still believe that if you are going to own one stock - that stock must be Intel regardless of any interim fluctuations. Good trading. Jack |
