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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: RocketMan who wrote (1143)	1/16/2000 9:57:00 AM
From: Jill	Respond to of 8096

I only remember cuz I was looking at them too on that day. But I didn't buy. Here's another snippet from Option Investor newsletter, reminding us to keep dry powder around in February: There may be a good chance the market will drop starting in the next two weeks. There is also a good chance the Y2K money coming off the sidelines could cushion this drop but once the earnings are basically over there will be some market weakness. This is hard to rationalize since market breadth is now more positive than it has been for sometime. New highs are beating new lows. The Nasdaq, Dow, S&P, RUT are all at new record highs. Investor sentiment is at an all time high. Yet, almost all the analysts are expecting some profit taking soon. Those concepts are not opposites. You can be bullish and still recognize that some short term profit taking will occur. Why am I trying to be so forceful in warning you about a possible bout of profit taking? Because most traders are so accustomed to buying the dip that they either try to hold their positions until it is over or they jump back in on the first or second dip and then get killed when the market continues downward. Everybody always thinks the correction will only impact everyone else. The stocks they own are good, strong and bullet proof. Sorry, but there has never been a stock that was bullet proof.

To: RocketMan who wrote (1143)	1/16/2000 10:02:00 AM
From: Jill	Read Replies (1) \| Respond to of 8096

Also, Option Investor is apparently giving a seminar in Denver next month. If anybody lives in that area, maybe they should go. I wonder if they are assembling their newsletters into a book. There's a lot of good general info about strategies as well as specific plays. Another snippet: The Options Clearing Corp reported that Friday was the fourth heaviest day ever for U.S. options volume with over 3.6 million contracts traded. This compares with an average of 2 million per day in 1999 and 1.6 million in 1998. Average daily volume in January has been over 3 million contracts. Also some comments on JDSU. I have a few calls and might like to pick up some more: JDSU announced another 2:1 split 3 days following its last split, which will become effective on March 10, assuming the shareholders approve an increase in the number of authorized shares from 600 mln to 3 bln on February 25. But this isn't the reason for the play. The earnings date however, is driving the play. The announcement is scheduled for January 26. If ETEK's 18% surprise last Monday was any indication, earnings should exceed the street estimate by a significant amount. Sorry, we have no whisper number. JDSU's CEO, Kevin Kalkhoven figures that they need to double capacity for the next two years just to meet demand. Even so, they can't produce fast enough. Thus it becomes an execution-focused business rather than demand-focused. JDSU is the biggest and most integrated in the business, which all but assures continued future orders. Support is firm at $180, but getting stronger at $185.