Look at this chart..
finance.yahoo.com
In my opinion this iBM is at support, the down side is that we can test 108 the 200 days MA the upside is phenomenol if we tewst and take out 118, now I don't buy puts if it closes abover 118 because I would think 112 a test of last year 112 is legitimate bounce, I will also not buy put for such small rnage of move, I will rarely buy iondividual stock put rather I will buy a SPZ or PSE put to play the downside on leading stocks or in case of internets DOT or IIX, so for me an interday dip is a possibility, now that dip can come amidst a big sell of and we may see NDX breaking like 2365 support if that is a case one needs to refine its entry but in normal course of business I define certain points and relate htem to major indexes that is exactly what I am trying to explain to you in my previous post, I agree the problem is not about density the problem is 'encapsulating a dynamic fluid everchanging strategy of trading' into some meaning ful entry and exit point with a barrier that our posts should hold good even if we see some dip and roar back up..
So for me IBM is a buy at 108-112 area.. the dip may come I am just forewarning but above 118 close it is a smooth run so here we talk about various potential moves so as to give you enough confidence in case of trade not going your way, just ot let you know that buying 120 calls for Jan may loose some premium as we visit lows but above 118 the run would be clear, so you have three choices..
1- Buy the stock at 112 and you are in the game..
2- Buy the stock as we test 200 days mA and you are entring little better or you can wait if 200 days hold thati s ideal point of entry I try ot get in if on a stock like IBM I have margin of 3-4 $ error, after all I am playinmg a leverage bet.
3.. Wait ofr that bounce above 118 $ and you are most probably entering on the up but secure that we have broken that 1177/8 resistance..
In my strategy 1st post it may sound I am running thru the trade but behind are the fears which are like y2k sales problems and sales isues Mer downgrade... all this is translated in to a strategy and than last but not least I have this protection strategy for calls premiums if 200 days mA is taken out that is to sell some index calls and buy some SPZ puts... you are right to ask clarifications, if you keep quiet I may be worng and you may not get it, so thanks for asking and never ever feel shy or intimidated...the trading is not a special art it is just common snese and here I do it very simple nice and straight .. no hot shot stuff..ike |
