JT> re: SBC - Southwest/PacBell
> [XLU - Utilities Sector Spyder ETF]
>
> Telcoms dominate this index - can they revive anytime iyo ?
...entry on SBC was what, ~37,5 and imho the near target is 50d EMA at ~39,5 where +2 bones = ~5% GAIN.
from the entry this last week, SBC busted up through its 16d EMA and closed at ~39, its 32d EMA; it needs to stay above that 16d EMA or, ~38-5/8 CLOSE horiz.
at SBC's near target or, approaching ~40 strike boundary, imho ~ I sell near-month 35C against underlying stock to exit and roll over ~5% profit (credit) to LEAP CALLs: the far target is 200d EMA at ~42,5
otoh, XLU I begin accumulation right here, probably in a tax-deferred account ~ iirc this spyder distributes dividend = DRIPs in DEC -?
at any rate, we're essentially buying XLU = SBC + DUK bellwethers here, a classic "growth & income" mix...
...obviously imho [SBC + DUK] are under-valued. fwiw, in my tax-deferred account I'm gonna hold my PCL - PlumCreek Timber REIT @ 9.x% APR + DRIPs and I'm plowing my 2001 BOND earned income into XLU accumulation.
-Steve |
