All: Well, Intel did attack that previous intraday high and
went right through it. MSFT continues to amaze me as it just
keeps right on going up. I guess this time the people didn't
like IBM's earnings. The party (I can't put his name on
here) that I told to buy the IBM leap puts to protect his
many, many Intel shares cleaned up today on IBM's drop. As
many of you will remember on Prodigy BB, I have advocated
the buying of protective puts (Leaps preferred) for many of
a time. These are especially critical to have now for
investors since this bull market has been ongoing for such a
long time. And, we know from history that they don't
continue forever. So, again for those of you who have
substantial core positions, I would say that protective puts
are in order.
I continue to hold Intel even after today's great move.
However, I did not like the bid/asked prices on the options
after the close. And, Intel selling off just a little after
the close later supported my concern. But, we will see
tomorrow and let Intel show us whether it will continue up
or pull back. Afterall, it has had a pretty good move. And,
again as I said last night, the markets are becoming more
and more overbought. Additionally, we have had much higher
volume in not only the Nasdaq but particularly the Dow here
in recent days. As for Intel, IBM, and the markets - I want
to point out that there has been a tendancy for them to go
the opposite direction (at least for a day, if not more)
whenever they have had unusually big moves up or down.
Good trading. Jack
ADDED: jmac: If you will go back and read all of my notes since I put the correction business on, you will see that I have referred to a correction starting anytime after IBM released their earnings up to 2 weeks thereafter. As for my positions in Intel or anything else, since I'm a short term trader those things do not affect me. I am confident about getting myself in and out of any position without much harm, if any. Thus, you give me a day or two, that's enough for me to rack up good profits. You may wonder how I could be up on Intel when I'm essentially looking for the correction in the markets. Again, I'm able to read "the tapes" well enough to make judgements about what to do at any time. But, I will be putting less and less about what I'm trading on the BBs - as most of you will understand just why. |
