Paul, I agree with you, but I feel we may see another 300 to 400 point drop today. I think it would be wise to put most of the quality stocks on the radar and look for buying Dec. and Jan. Call Options.
This is a plain overkill situation and I believe that by next week we will see most of these stocks and some of the quality issues such as CPQ, PSFT, BMCS, DELL, IBM, INTC, MSFT, ... trading off of the lows they will hit this week.
I usually use covered calls as a strategy in my investment portfolios, so I have not been effected that much by this latest crash. I will be buying back most of those calls this week.
One of the calls I wrote was the KEA Dec. 40's when the stock was at 38 1/4 two weeks ago. I will, probably, today or tomorrow, roll out of those and look to sell some Dec. 30's or 35's next week. I think that VIAS and IMRS will also provide some good profits from now until Dec. or Jan.
This is the time to look for the bottom, move to quality, and keep your wits in this plain and simple PANIC.
We will probably settle in somewhere between 6800 and 7100 on the Dow before we see stability take control.
One thing that I am glad to see, believe it or not, is tha the U.S. market is setting the trend for the world and not the other way around. After yesterday's losses, the whole world is now focusing on Wall Street, and that is the way it should be.
We will now look for Wall Street to get us out of this CRAZE instead of Hong Kong or some other B.S. Market. |
