All: Good Trading Jack is back.
Well, they say that a sucker is born every minute, second, or whatever. I have read all of the 700 or so notes that I missed while absent. In spite of major articles recently in Forbes, on Lombard's internet line, etc. and major appearances by known professionals including the president of the Nasdaq on CNBC who have been interviewed and commented about the subject of market makers - many still refuse to believe the situation with options expiration day.
And, some of you will believe others on this BB who make their comments as if they are fact. For instance, one poster has given a dialog of what happens on options expiration day with the MMs buying stock or selling it to cover those option holders who are getting out of their option positions on expiration day - like that is the only day that this will happen. People, option holders buy and sell every day that the market is open and do you see the same thing happening on those days that happens on options expiration day? I'm afraid not. Finally, I want to remind everybody that I said from Day l that I was on this BB that the MMs were there and they have been all along. I told you why - that they try to determine the market psychology of the individual investors/traders - same as I admitted to you that was one of my reasons for being on here. So, finally we have an alledged MM coming on one time to make his comments about the situation. And, maybe he didn't admit that he was involved personally but he admitted that it could be done. Does he have knowledge of it actually being done? Maybe and maybe not. That's up to the SEC investigators to find out. As I indicated in an earlier post, I would contact them. I read the MM's note verbatim to them. You know what - they said send it to them in writing for their people's attention. We are all victims of the situation in the markets whether we buy and sell options or we are investors holding the stock. In other words, if my call options drop in value, your stock has dropped also in value. Think about that. Finally, jmac, I have read and reread the note that John F posted for me. I have had him and others read it - and nowhere in there have I said anything about denying the MM the opportunity to post on this or any other BB. And, in fact I do understand that he and other MMs have to make
a living.
Well, I'm not surprised that Intel finished between 140 and 145 on expiration day - as I had indicated much earlier this was probably the two strikes in question. And, as for CSCO - if you read my last note that John posted on here you will see it closed right there one tick off of my projections for it and as for SUNW - it too closed right near the dead center between its 30 and 32 1/2 strike prices.
And, good old IBM was right there near the 165 price also. Many of the techs were at their strikes or centered.
And, less I forget - I told all on this BB that I was hard headed and still looked for Intel to announce a stock split this earnings period. They did cross me up a little by not coming out with the type that I thought was still possible. Well, if the markets remain good - I don't see any problems with Intel not splitting until after the May vote. In fact, with good markets Intel should continue to move upward.
However, the problem is that in my opinion we are due for a heavy correction here soon. My only thoughts about when it will begin revolves around IBM. I believe that after IBM and the other major tech stocks have released their earnings for the past quarter, that the markets will then start a major correction. Mind you, that I'm not calling this a bear market type of correction, but just an intermediate correction of the long rally from last July through the present. Only if I see blowoff volume over 700 million shares for days will I think that this forthcoming correction is a bear market instead.
As for MSFT and their earnings. It looks like we are in that period when it is best to sell out on the high price the day before any earnings are released from the various companies.
All for this evening. Good trading. Jack |
