well, I put in a limit order to purchase some nov 90 puts, for a few bucks less than they cost now. I've been evaluating whether or not I should pursue this short. It seems to me AOl is putting in a bear flag.
The flight to quality, as evidenced by the drop in yield on thirty year treasuries, suggests to me that smart money is leaving the market. It thus concerns me when GZ says we rally from here, as his timing has been very good. However, as always, other very good technicians here are calling for a limited upside bounce with a continued downslide to follow. My own read would be heavy down next week, if not Monday, then probably tuesday, although I'd be surprised if it wasn't Monday.
With regards to the AOL trade, a lot of people think AOl and other big name internet companies are just great. Well, that may be the case and they may indeed turn out to be very profitable growing enterprises, however, that does not preclude them from being very overbought. |
