On CSCO and MOT.
I'm considering buying CSCO calls for a quick trade...either the March 50's or April 55's. The stock is at support right now, and Parabolic Time-Price just turned positive (parameters = 50acc/25stp), indicating a short-term uptrend. I've noticed that when the 50-25 PTP works, it usually either works immediately on the stock or quickly reverses its signal within a few days so there isn't a lot of waiting. James Wilder of Wilder RSI formulated the PTP indicator.
I'm also looking at MOT options also, although I bought the stock about 3 pts ago. 50-25 PTP also turned positive today. I think the trend is clearly up, and right now upside momentum is strong. MOT is #2 in DSP's (digital signal processors, a high growth area), has a great record of innovation, its StarTac cell phone is doing well, and semiconductor division [excluding DSP's] should also do well going forward...more Apple clones, higher sales of communications IC's. Sorry about my bad grammar; the lack of parallelism would really aggravate my professor. In short, I see mkt sentiment turning more positive for MOT.
If I went through with these trades, it would be my first experiment with short-term (less than 2 wks) timing in years. Recently, I've done well with long-term options on undervalued stocks with low to very low market correlation. However, CSCO and MOT have higher mkt correlation...how much should I weight the general market's outlook when deciding to open positions?
Comments welcome.
Philip |
