Options update for May 7...sell in May and go away.
I think I'll start with the Q&A today--Jan, Dave Simmons is back looking disgustingly tanned and rested after his sojourn in Paris. I hope he rejoins this thread as well. You asked about how I look at Bell in terms of my trading strategy. Well, I use the usual suspects, the US long-term bond, the S&P future, NTL, dividend yield, and a strong reliance on the technicals, specifically the 9-day RSI. I also use a lot of seat-of-the-pants tape-watching. I try to indentify a trend and hop on. I've never been good at investing, just a fair trader, so I'm flattered you asked me where I thought Bell will be in three months, but I don't have a clue. Dave said he thinks Bell is going to $80 (sorry if I'm letting out proprietary info, Dave), so I'll go along with that. I bet it sees $62.50 first, though. Actually, I bet Bell trades below $35 on Monday! (Don't fall for it, it's a trick). Jan, I see your post is time-stamped before 8AM today, so I hope you kept your shorts on. (Hmmm, did I say that?)
Li-Fan Chen, the numbers after each stock represent the implied volatility for the calls/puts for the stock's options. This thread covers options, which means we discuss shorting, so I don't really see a need to dilute by starting another thread. If you want to discuss shorting Canadian stocks...fire away!
New York sure got ugly today after the Beige Book was released and the bond auction results were reported. Dow down about 140 and S&P futures down 17 points. The Dow still looks weak to me...I expect more on the downside for a while.
ABX: Well, thank goodness. I have felt for a few days now that Barrick had a good rally coming. Today's action repaid my loss on BXM for me. I think ABX will have to do a little work to get through $34.00 though. (32.5,30.5)
BCE: Bell had a very orderly sell-off and closed near the lows of $68.30. My near-term target was $68.00, so I bought in some of my shorts and will take another look tomorrow. (20,21.5)
N: Inco sort of dithered around today in cross-currents; the overall market was trying to drag it down while sector players who like the cyclicals at this point were buying. I'm trying to reduce my positions in Inco--my long premium is starting to build up and the summer doldrums are coming. (26.5,26)
Well, Fearless Fleming really put his foot in it today--lambasting the press for what he perceived as 'unfair' coverage of the TSE and its handling of 'l'affaire Bre-X'. Doesn't he realise he's declared open season on himself and the Exchange by doing so? The press will turn on him like a pack of dogs. Should be fun to watch.
A not-so-happy milestone for me tomorrow--I'm getting an eye exam so I can get a pair of (*sigh*) bifocals. Where did the time go?
Happy trading.
Porter |
