Well, welcome Barbara -- all of you. Back before I was born wasn't too long ago...I have even heard that Paul McCartney was in a band before Wings.
I too have noticed the preponderance of the Barbara name in relation to the postings to wit. (That's lawyer talk.)
Ok, I am going to get a good night's sleep and be ready to wheel and deal manyana. The Pie Indicator is reading a solid 8 and the Ten Toe Test is flashing GREEN. It wasn't until moments after the market closed that these indicators came into synchronicity and rang the bull bell. (Or was that Blue Bell?)
GD was wanting me to force a call, but I held firm until I knew.
Suggested daily double: Buy FGII Dec 35 calls (they expire Friday) for about 3/8 first thing in the morning, if we don't gap up. (I already own 75 of them at a half and will try to buy another 100 in the morning.) My money says those calls will be worth something close to at least a buck before Friday. This is pure gamble money, so don't get greedy or stupid. Take what the market gives you. Plan a trade, trade a plan.
Below is from 12/14: rightline.net
(two week free trial avaialble)
A puzzling week for the once powerful group.ÿ After staging a great
rally only two weeks ago, Tuesday the tide shifted and sent the group
back down.ÿ Tuesday started the selloff which gained momentum as the
week progressed.ÿ The sector has retraced and is now retesting the
lows set a couple of weeks ago.ÿ As the 15% rebound proved, this group
of stocks has the muscle to make a move up, but when the market is in
a serious selloff, the Drillers, being momentum driven to an extent,
tend to move sharply.ÿ Nothing has changed fundamentally.ÿ There
wasn't a bunch of downgrades.ÿ There were zero earnings warnings.ÿ In
fact there were several upgrades and a split announcement on the week.ÿ
With this group the trick is to simply wait for the selling to stop
and when they reverse, capture some of the move up.ÿ Tuesday I opened
up the discussion on trading plans with the question "did you take
profits?"ÿ In this type of market you need to adhere to your plan and
take the profits quickly.ÿ Yes you may leave some on the table, but
reducing your exposure by keeping trades short is critical to staying
profitable.
The plays remain the same as were identified in previous issues.ÿ I
will present some noteworthy news items today, but am not going to
simply repeat the same information that was contained in last Sunday's
issue.ÿ If you need that issue, drop us a note and we will be glad to
forward it to you. The Asian disease should have minimal impact on the
Drillers. The only big risk is a major drop in oil prices that could
weaken the strong demand for their products.ÿ However, with the cycle
time to build rigs so long, majors likely would be very reluctant to
lose their place in line by canceling a contract. There is plenty of
opportunities for the mostlyÿ domestic companies to maintain their
tremendous earnings growth. |
