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Over this year anyone who is invested in semis has seen one hell of a run, these up and downs at heights are normal part of our exercise. I can see SOXZ breaking 525 a close below it opens the door to a qick spike to 500 or even 483 level but in my opinion after today's number Fed has no case left, the slow down is quite visible and I would think that earnings will wipe out the remaining fears, to take old highs is not easy but old highs are only taken out by markets driven by earning momentum and non-inflationary growth, in the sectors we guys invest we have high volatility and the only way to accept it is to have higher tolerance level, now look at GLBX or AOL or YHOO we have seen a fanatastic naturally within this move one can see a touch and test of the supports and that is for a index and marekt very important like 1267 test, it gave new lease of life to the market that reaffirms commitment of investors that they will not be dettered by these up and downs, naturally some one who is a great player on the short side can claim vistory when market moves from 6000 to 11000 and sets back to 10200, for the bears who have the worst kind of record this set back beocmes a talking point but markets have set backs the inefficiencies of market demand it nad moreover internets are interest sensistive stocks, after all any earnings need to be discounted so when we see a interest rate rising scenerio we do get huge corrections and it is for this I deal with options and never the stock, and i am always opposite to the trend when put premiums are cheap I invest in them when call premiums are cheap \\\\\\\\\\\i get them, the time value as we say 'time is the biggest healer' puts every thing in the money within a life of a option.. with my close points more often than not rarely we carry a SPZ trade overnight the maximum juice is extracted and thrown, where as the long term call options continue to wait for that spike up the one example we all saw was in DOT......725 DOT will reveal that we have been highlighting htis from Sept 2 as our target we get out of this we move on to 775 but first thing first the close above old highs will be the task now for the market and a lcose above 2500 on NDX will be a good basis to get earnings right.......... |
