Steve, I was surprised I could trade at Waterhouse at the peak of the selling. Anyway, got a bottom fish today (had to use call as I'm now into the poor man mode) by buying April PHCM 135 call for 2 1/2. I hope to be able to sell it tomorrow between $12 - $15 (if PHCM moves to $130 - 140).
I don't think we will go straight up from here even if today's bottom actually becomes the BOTTOM. After such a big scare, most people are on the trader mode so things will go up and down very fast. Unless one can keep a close eye on the ticker and a fast execution/confirmation broker, I say stay on the sideline and maybe only use some rediculous limit price to buy, e.g. buying RFMD at $80.
On a more positive note, I think today's selloff has every look of a capitulation one needs to get in a crash cycle. I read that there was no bid at one point, and that was the de facto sign of a capitulation scare. Remember Black Monday? Gray Monday? Aug 31, 1998? I believe there were no bids across the board at one point and the market dropped 5% over several heartbeats followed by a broadbase recovery. Keep my fingers crossed anyway as I have used up my powder. Otherwise, I would hope for more short term big drops to bottom fish some more.
Look like I may be selling May put's early this month to take advantage of the current big intraday swings. Other than PHCM and HLIT, I think I will have to roll over MERQ, TXCC, VLNC and CNXT.
Pete, BBY broke below $80 which is a breakout point and midline BB. Therefore, it may be time to rotate out of BBY into something with a higher flash point <GG>. On second thought, maybe cash is better. |
