Wear your shorts this week, it looks like things will be heating up for RIMM, CIEN, TIBX, SEBL, MCDT and RIMM. We 'captured' IWOV, CIEN, SEBL, TIBX just on time into its drop. RIMM should be next. We didn't hold short plays over the weekend, it would be lack of good strategy to hold a short play overnight in this market climate now as oversold situations are bring in some players trading for "bear flag rallies".. RIMM is in a bear flag rally. Hold only option put positions. We will have more opportunity to short swing trades the closer we come to 'earnings pre-warnings period'. And the same thing i would say for long positions however, hold some long call positions in QUALITY tech stocks (i.e. JDSU, EMC, NT, SNDK) to take advantage of their attraction to 'cash sitting on the sidelines'
CIEN is still trading at triple digit multiples, but we have to watch very carefully. If CIEN continues down on Monday (probably will lose support after any upside in an exhaustion rally), it should be good for downside for some time until it might stop right before Thursday's close and do a BRCD dance for us. Remember the more anticipatory downswing displayed by CIEN BEFORE earnings the less likely it will be a short play the Day AFTER the report. However if CIEN has some 'staying power' and shows strength to the upside, you can be more assured of a move DOWN after the report. Lots of 'fodder' left in CIEN for a short play. |
