Richard,
As you know, I am not a TA analyst so I am not the best person to ask. However, I think a "Head and Shoulders" pattern can indicate a stock that could go in either direction. The fact that Jack was very long Intel Call options indicated to me that he expected INTC to go up in the near term.
Re; what do I think of the overall market these days? I think I was very clear on Intel, and Intel is somewhat indicative of what I believe, on a more Global view. However, I do acknowledge that there are concerns, for the October time frame, that we could see a correction. Yes by themselves, these perceptions could bring on a correction and be a self fulfilling profesy. (Historically Oct. is not perceived as being a good month to be long) Also, overseas investors might opt to pull money out of the US market and invest in foreign companies that have, until recently, been depressed, (i.e. SAP for one). My feelings though, are that US economy remains strong. Nothing has changed in the last week to warrant a change to a more bearish posture than existed ten days ago. And with Overseas Economies improving, the outlook for American Tech Companies couldn't be better. Hence, the actions I took and reported last week.
Regards,
Jules |
