All: To be a successful trader, you have to be good or
sometimes lucky. Today, I was lucky. After watching Intel
hit up into my 138 plus resistance area, I just sat there
and watched it come back on what I thought was a normal
pullback. Yet, it kept right on pulling back. I made the
decision to stay with it and play it according to my gap
rules. When Intel hit 135 1/8, I was on the line with a
broker. I wanted to be sure that I was getting the quotes
immediately as sometimes during fast trading times the
electronic quotes that most of us get at home can run a
little late. I had already given the order to sell but to
hold it pending my confirmation of the exact bid and asked
prices before sending it. It never ticked any lower than
that 135 1/8, but it proceeded to start back up. I told the
broker to forget sending the order, I would stay put. Intel
then roared right back up there like it might get back to
the day's highs, but it instead starting going back and
forth and finally ended where it did.
Tonight, I see the overseas markets are doing okay thus
far. That could help our markets some. However, even more
important are the economic reports due out tomorrow. They
need to be in the ballgame where they are seen as positive
to the stock market.
I can't help but think that the MMs and the other powers
that be will take these markets to new closing highs
tomorrow - maybe even new all time intraday highs. Can't you
see the newspapers this weekend proclaiming the Santa Claus
Rally as on its way with new highs already attained. All
this making for a great opening next Monday morning as many
who read these articles will rush into the markets with new
orders in hand for the gleeful MMs and brokerage personnel
to sell their wares to.
So, if the above should come to pass - I'll feel good about
Intel and the markets chances forthcoming. Instead, if
the powers that be decide to play things the other way -
down; then we will be in for it. But, in summary, I'm
hopeful that things will turn out for the best.
Thus, all my previous comments made in other notes during
previous days are still pertinent as to support and
resistance areas. I would put an early support at the 135
1/8 area just to remind me of today's low. And, of course,
we still have to go through that 138 plus area into the 139
plus numbers at least for Intel to go onward.
Hopefully, many of you watched and heard the man on CNBC
today state the possibility of a 3 for 2 Intel split to be
announced around earnings time. Well, they have a precedence
for having 3 for 2 splits as they had one in late 1987 as
such. But, I would still like them to do the 5 for 3 split.
It would be much nicer for all of you investors - and, of
course, for the traders of options as well.
All for this evening. Happy holidays. Good trading. Jack
Added: Paulo, the reason that the call options have not changed that much is because of all the premium that the MMs put into them earlier. They are just now adjusting that premium to be more realistic - at call holders expense.
Added: Jmac, yes Intel actually did just end up in the middle. My thoughts are as in my comments as above. I'm bullish tonight based upon what information that I have to make comments at this time.
However, it's up to the powers that be and how those economic reports coming out Friday are evaluated by the markets.
|
