Robert,
I was thinking Jan effect too, but then I thought of another senerio. I think most tax selling was done in Aug/Sept. The Semis/Equip have had a great year end run-up. People want to realize gains, but do not want to claim as a gain THIS year. Thus, the profit taking starts next week and will drive prices down. I think today end runup was people buying thinking that this was as low as some stocks were going to get (ie tax selling)
In conclusion, I think buying stocks they were beaten down all year, could start rising next month. Stocks that had gains this year, could have selling pressure.
At any rate, your latest trade was sure a good one, given the pop up at the end. Not sure if I'll hold my calls, buy them back, or just but some Jan 17.5 in case there is a big breakout.
Good Luck
Mark |
