Bill,
fundamentals are not identical on every case, and psychology plays a big role.
all banks/drugs/insurance companies have been on an uptrend and have nice 200 dma, but they finally broke - trees dont grow into sky, that is just about it. overvaluation.
AOL is a different story - its valuation cannot be quantified because lots of it are built into expectation.
Many of the big caps have gone far beyond they should be in this bull market and they are now vulnerable for a correction if mkt should melt. That is all to it. Look at CCI, MRK, PFE, etc. etc. I wish I have bought puts when they are at their rising 200 dma, 50 dma, 13 dma, and using your own rules, 2 months out, I would be laughing all the way to the banks now.
By the way, have you visited Tech option thread ? their time frame and % return in those time frames seem much shorter/greater than yours. And some of them do put against rising 200 dma, intc, dell, ge, you name it.
thanks. |
