DragonBoy,
There seems to be a little electricity in the air about this shaping up to be a possible top. I believe the best play for me at this point is to hold my long position and go ahead and enter a short position on the next uptick. My net gain/loss will be zero with this straddle, but at least I've got my uptick secured for the ride down if it happens. If it goes up, I'll exit short, if it goes down, I'll exit long.
I still believe that Mikey wants his stock to close @ 160 or above and once again there is considerable support at 158. The support that formed yesterday at 164 is somewhat disorganized as I noticed alot of sellers participated at that level.
Right now, with all the good news coming out, new product announcements, split on Friday, earnings on Aug 19, etc., fundamentally, as always, Dell looks very good. Technically, however we are currently 44 points above the 50 day moving average and I can't help but think we are somewhat out on a limb.
Anyway, I've rambled on long enough. That's my read, and that's how I plan on playing it. I recommend you play it however you feel most comfortable. Just remember DELL is a stock that likes to eat short positions for lunch, as your bears back at mile post 138 will testify.
Anybody else have any comments, suggestions, observations?
Maybe together we can figure out what's happening here.
Good Luck
Larry |
