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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (46010)	4/29/2001 1:09:48 AM
From: Jerome	Read Replies (3) \| Respond to of 70976

Robert, its not a question of trying to outguess the market, its a question of putting capital to work. Probably 70% of my portfolio is the same as it was a year ago. (AMAT, NVLS, LRCX, ESIO, ASYT,KLAC INTC ) The quantity of any given stock may very a little. Because I write covered calls month after month I do end up with surplus money that needs to be put to work. Money market just will not do it for me. If you look at the choices I made CSCO, ASYT, and CPQ, these three for the near term offer some potential for significant upside with minimal risk to the downside. Take CSCO.... Buy it on Monday for about 15.50 per share. Now here is where I differ from most investors. When I buy CSCO I have a plan for what I will do if it goes up, what I will do if it goes down and what I will do if it goes nowhere. I believe that CSCO will rally this week to about the 18 level. Earnings are almost here and the first of the month may give the stock another boost. 1) If CSCO goes up to 18 by Thursday prior to the close I will sell out. 2) If CSCO gets to 17 I will write the May 17 1/2's for at least 1.50. 3) If CSCO drops to 15 or below I will immediately write the 15's for May and take whatever I can get. 4) When CSCO reports earnings (and I hope they are bad) the stock will rally strongly. This is what we have seen thus far this quarter. Its like committing a crime, going to confession, and feeling better afterwards as you get your reward.(a clean conscience) Thats why the preachers love all the sinners, (because they can be saved). This is exactly why the tech stocks rally after announcing the bad news. The investors who are the preachers are saying, " if that's all you did I can forgive you now and give you a free pass to paradise" I post short term trading positions because I believe that there are viewers that do the short term thing. Just as there are viewers that are LT..B/H that check with this thread every few months to see if there are any interesting postings . Keep in mind that if all the posters, and lurkers did the long term thing there would be no need for this thread.Hope that the religion analogy didn't confuse some readers. Regards, Jerome