Clinton, yes leaps are definitely better. They are giving you a lot longer time horizon and therefore are not so dependend on market swings. I have thought for some time about doing the leaps, but have done alright with margin. Like the saying goes: don't fix it if it's not broke. That's what Sonki says now about the drugs after the market has gone down and the drug stocks with it. Lilly and WLA of course had gone quite high in the last couple of months. so that is what gets hit first and the momentum players leave. The reason the techs have not been hit quite as hard is, most of them are in the NAZ. Cpq went down in the NYSE and so did IBM.
Intel got hit in the NAZ and so did AMAT on Friday, despite the good earnings. When investors take profit, it's the high flyers first, dell seems to be an exeption, because their earnings are coming out and no one wants to miss the chance for a surprise. Just hang loose for a couple of days, Lilly, WLA and Merck look good, whatever is lower PE wise. Mylan, I just heard today that the GOVT. is looking into switching practices of prescribed first tier drugs. Might cause some hesitance in the generic drugs. I can't tell yet. I am sure there will be more announcements coming up about it. But anytime the GOvt. interferes in things like that, it does not bode well. I was wondering why Mylan has been retreating. It was supposed to be a 50% mover. It will not affect the regular Pharmaceuticals, they could gain on this.
I am also not quite sure what kind of drug switching is done, it might be just cheaper ones and not generic type.
I did hear one of my favorite economist's Larry Kutlov on TY this afternoon. He generally says it the way it is. He also said the Fed Governors should keep their mouth closer to their vest and stop disturbing the market with their constant opinions. My sentiment exactly. I put an article on Friday a week ago about Fed Gov. Susan Phillips gabbing. She did it Thursday afternon and shortly therafter everything went to pot. I think that she started the ball rolling, everything else afterwards was fear. Interest rates, dollar,inflation you name it. So maybe it get's better after the no rate hike announcement. Take your time with new stocks until it's starting to go up a bit. BTW, they also discussed that investors taking profit due to the tax cuts. He said last time there was a capital gains cut the market went down for a while but then came booming back. ok, that's the end of my commentaries for this weekend. I think most everything is just a guessing game anyhow, no one ever knows for sure what exactly triggers things. Whatever will be, will be....Remember the song by Doris Day?
Sonny |
