ALL: Those that bought IBM protective puts to cover Intel
long positions must be laughing all the way to the bank -
with me. As Jules G. has acknowledged on the SI BB already,
I was the architect of that absolutely brillant move. To
Jules credit he listened to me and then picked his own
strike price in the IBM puts to protect himself. Now, Intel
has went on to newer highs - while the IBM puts have not
kept up in price appreciation. So, people in this position
have the best of two worlds.
The market corrected to my borderline 6600 number within my
6500-6600 support level a few days ago. Thus far, it has
held and we are in the midst of testing our all time highs
in the Dow. I want to point out though that today's Dow
closing was still not above what the Dow did intraday a
couple of days ago. Thus, we still have some more work to do
on the upside, if we are truly to go onto new highs.
Meanwhile, the Nasdaq is a long way from making a new high
at this time - something like 30 plus points away. Again,
some of the technicals are not very good yet; but I did like
some of the volume characteristics of the market indexes
today relative to what they had been doing.
So, tomorrow we go into the markets expecting some
additional upside (barring no unforseen announcements before
market opening). Over the time to come, it will be important
for the Dow (and Nasdaq) to go to new highs to reestablish
that we are indeed still in a continuing uptrend. If we
don't get these new highs, then I expect that once again we
will be coming back - how much back would remain to be seen.
In conclusion, IBM was up today but still was having some
problem keeping above my 156-157 resistance area. It may or
may not go on to the next one at 160 - but definately that
is an optimum place to put the IBM protective Leap puts
strategy into place - since those holding Intel should have
plenty of points head start by now. Good trading. Jack |
