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Rick, I would be very careful about buying OEX calls at this point.I think the vast majority of the large caps are still grossly overvalued. I'm somewhat bearish on the S@P. I'm alot more sensitive ( and actually Bullish) to the small cap sector, and in particular, to Cube, my favorite stock ( although you wouldn't know it from some of my posts). From Cubes standpoint, this large cap correction is very positive and I'd like to see it continue for a little while longer. Today, I saw a little bit of institutional buying in Cube. This money coming out of the large cap sector was way overdue and its going to find a new home in the small cap sector, with some of it going into Cube. It's about time! Many of the small caps were up real good today: DIMD, SIII, DTII, BORL. Usually when the market corrects, the small caps get hit the worst, especially stocks like Cube. But they have been holding their ground. The stock that everyone loves to hate ( except on this thread) put in a very gutsy performance yesterday. I only expect a small technical bounce from the OEX. I expect the OEX and S@P to radically underperform the small cap sector for at least the next 6 months. Going forward, I would put my money in stocks, like Cube, that have truely bottomed out and have nowhere else to go but up! |
