Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 169.42

-2.2%

2:15 PM EST

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To: Uncle Frank who wrote (92157)	1/19/2001 5:59:44 PM
From: Ibexx	Read Replies (2) of 152472

UF, Your intention of buying calls to leverage is fully justified. However, when you choose to buy a near-money, front month call of a stock not quite in an upward trend, the market makers would tend to artificially depress the stock price in order to render the calls worthless. This is relatively easy to do in the absence of strong buying pressure. The MMs would not be able to do this if there is considerable buying pressure, ie. stock in an upward channel. For additional explanation, I refer you to teachings of www.schaefersresearch.com Ibexx PS: calls are fine for stocks clearly in an upward trend; ie. AMCC SEBL, etc. PPS: QCOM is currently in a down trend as it's been trading under its 200 ema which also points down for the moment. Many traders use the 200 ema as a major criteria for trend reversal.

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