jmac: I have posted on Prodigy for many years. As such, I have built up a following because many people have come to find out that I am right more times than wrong. I want to stress those last 7 words. Not any of us will be right every time. Because, I had indicated that I was leaving Prodigy, there was such a clamor from others to P that they offered me free access to everything if I would stay on. Since I like a bargain (and I'm cheap, cheap, cheap - ggg) I stayed on.
Don't misunderstand that one point reversal rule of mine. It doesn't have to hold. In fact, after reversing the one point - Intel may well reverse again to keep going the same direction it was initially going. It may be a second chance to sell (or buy, if going the other way) - but, it may just as well started up from its very low point or down from its very high point (again, depending on whether this one point pullback is occuring when Intel has been going down or when Intel has been going up.
As for the markets tomorrow, we will have to wait and see what the economic news brings us in the morning. The overseas markets are a little nasty early this evening also - but can always change before they close. Again, Intel is in the midst of a beautiful triangle pattern which should be rewarding if there is an upside breakout. On the other hand, if downside breakout - not so good.
But, it still has several points down before getting into any trouble - if it even should go down that far. My support and resistance areas put on here in other notes earlier this past week are still the numbers to beat.
I've been reading the options commentary notes. Much of what has been said on here about trading options, I've talked about before. You get the most bang for the buck with options - but you have to be right or get out immediately, if wrong. You trade the options just like the stock - and to trade the options you watch what the stock is doing primarily and the option will take care of itself. Just keep taking a glance at the option prices to keep abreast however.
Don't buy options way out of the money with very little time left. The MMs will take you to the cleaners. The best option to buy is either slightly out of the money or barely in it. And, you don't buy just at any time. You buy the calls when you think the stock has made a minor (temporary) bottom. Too many people rush in and buy the options after the stock has already bottomed and ran up several points. It's at about that time that the stock starts to reverse (and the options reverse too). In my case, I'm able to trade in and out on very little moves by the stock and make money. If I choose to let things run some, then that will be big money. The real fun comes when the markets and individual stocks have reversed and inexperienced people playing the options up don't catch it and don't get out immediately. I'm well aware of far too many who make money as long as things are going up, but then lose it all when things reverse. However, those things are essential to learning how to trade. Anybody who tells you that they never lose is not telling the truth. Do I lose sometimes? I sure do. But, that's all part of the game. Finally, I want to say that everything that I put on the BBs is just my opinion and I could be wrong at any time. Like Paul Losohl used to say on Prodigy - The foregoing is my opinion and I reserve the right to change my mind at anytime. (ggg) All for this evening. Good trading. Jack |
