I was mulling over what I wanted to say concerning QLGC, knowing it would be dangerous to speculate what the stock was going to do in the shorter term.
This is essentially what I came up with...
Presently the stock is hitting it's head on resistance which is it's downtrend line, as Gary Smith of The Street.com has stated. He said, and I agree that that reistance is around ~$52.00.
I own the stock, and continue to belief that the company and it's stock will improve over time, with wild gyrations. It was encouraging to hear that their Fibre Channel switches were growing, even in these difficult IT enviroments.
I am not afraid to own the stock, inspite of it's volatility. I do however write calls against it, with a stike above my cost basis. I feel if that the stock is taken away, the IT enviroment will allow me to buy it back or at least write some puts to pick up more at a favorable price.
Looking at the chart:
bigcharts.marketwatch.com
I see support at $40.00 and again at $35.00 and I would not be afraid to buy anywhere in between. If your time horizons are longer, and you have excess of cash, aside from sending it to me, I would buy on any pullback into the mid 40's and employ some option trades against it or to supplement the position.
Best wishes,
Len |
