Morning IKE
Actually from my perspective, and thru professional people i follow the markets are where they should be at this moment...
The increasingly bearish tone from SI & Wall Street is a strong contrarian factor...Bernie Schaffer is extreamly bullish because of OEX put/call ratios, and the VIX...
This is not a market top, there are only excesses in YHOO<g>...and of course the internet stocks...There is no way of fighting this trend IMO, no way! When excessive Call buying is prevelant Then we will get that speculative bubble, but that is just not happening now...
However, i just looked at all the stocks in the SOX index..most are trading at or below 50-200 mav...it's weak, and getting weaker IMO...
Ike the real event that will explode/implode this index is INTC after the bell on Tues nite..PERIOD....The semis & semi equips have been warning for 2 months now...I have puts in many of these stocks, Apr & May strikes...they are ALL In The Money...if INTC comes in good, i will exit those trades, and have no worries about lost money...i will not lose money, based on my cost basis and how well positioned i am...
On the other hand, if INTC comes in bad, i'm positioned for a major homerun, for a small amount of investment...
As for the rest of this market, sector rotations are on going, and self correcting, in my view...Markets can and often do, stay overbought, and Ike especially with the power and money influence that has been flowing thru those doors....
I have made a wonderful come back from my debacle of last fall...I'm a happy guy<g>...Just now though Dorsey has given early warning signs to me, as per their indicators...I will be trading now for hits & runs...of course all my Leaps will stay where they are...
In essence this is now a market for traders, option players, and nimbble people...whipsaws and volitility will be in the offing...
I'm looking forward to next week, the excitement has me pumped up....
Have a great weekend in gay Parree.......Jer |
