dennis,
Great call on how the market would act...
I went to sleep, since I stayed up all night observing the market etc..
We ended almost right where we started..
As for puts, I am not going to get into any for a while, they are way too pricy, I dont want to spend 17 for the OEX (That is what it would have cost to get the Oct 495 yesterday), So instead I will start looking for entry on longer calls for stocks I like.
DELL held up well today, it is MSFT that got clobbered, since it had run up 8 points in a few short days.
I also think this slump might be slower and longer than in the past, notice how earnings warnings and layoffs are creeping into the scene. This will make a downturn go for a long time. I dont think this Q's earnings are going to be so hot.
The only thing to save the market from this trading range is that rate cut and other markets repairing their damage.
Finally, I do think this is a trading range market. If the market gets to the 74-76 area, people will see there are values out there that cannot be passed by and scoop up the financials, the telecoms, the techs, the airlines etc. And the top limit is likely to be 8100 as Don Sew pointed out. If we all have the game plan before the game, then we ought to be making money up or down, right?
gotta scoot..
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