Paulo, you had to buy the calls today when Intel closed its gap down for sure. I've put on BBs many times that when Intel closes its opening gap and ticks 2 more times past that - it usually is headed that same direction for the day. Nothing is perfect in this business however, and there is always that exception that you should be prepared for. As I indicated last night in my note, I would buy the calls. I felt there were lots of reasons for doing so, as I put on last night. I don't like it that Intel backed off of its high at the close. It is now setting on its 10 day moving average line exactly at 130. All might need to review last night's note relating to what price I believe the MMs will close Intel on expiration day this month. I should be in the ballgame.
I just read the report about the B2B of the semi equipment makers. Their B2B was up to 0.87 which is better than the revised 0.77 for the previous month. This may give us a little push in the semis tomorrow.
But, on the other hand, I'm still concerned about the serious breakdown of the technicals in all the major indexes as well as some of the tech stocks here lately. They improved some today, but not a whole lot. This wasn't exactly a blowout today coming off of the type of declines we have had for the past couple or so weeks. Tomorrow and the day thereafter should provide us more information to reinforce where we are going in here. But, again expect the MMs to run prices up a little past one of the round numbers and then bring them back by the close on Friday expiration. At this time, I would say that 130 is my first choice and 135 my second.
Jmac: You should have sold out those calls when they came back on you before, while you still had profits in them. Now, all you can hope for is that we get a rally here in Intel that will allow you to get something more for them than you would at this time.
As for tomorrow, Intel will have to go beyond today's high to show any indication at all that it may continue this current upswing. Any break back below 130 after going higher might indicate a temporary problem here technically. I could say the same thing for the major market indexes. All for this evening. Good trading. Jack |
