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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (615)	2/4/2014 10:27:25 AM
From: robert b furman	1 Recommendation Recommended By Kirk © Read Replies (3) \| Respond to of 26788

Hi Kirk, I've been biting my nails watching this market go down, while wanting to sell some puts on intc (I had some expire this month worthless and it made some good money). I have a rule that I'm following on selling puts when price hits the lower Keltner on a daily chart. Finally triggered today so I've renewed my position. If put to me, I'd have a net price of 19.08. I'd like to buy intc at that price as it would yield almost 5%. It could also give some capital gains appreciation I think. any how it just dipped to 23.58 and I git a fill. Then it bounced - Intc often revisits it low and then bounces up so I'm watching it closely. Back to your question - a lot of stocks on different time cycles have done the lower Keltner thing. I think it all part of the boys getting loaded up and making a paycheck. On these dips that offer fear with out any technical damage - it just sets up a pay plan. Many people buy puts for insurance or a hedge and that gives them peace of mind knowing they are hedged. It also gives Wall Street a paycheck that evaporates and must be rebuilt 3-4 times a year. So far,(unless we go below 1709.67 - I think that is what we're seeing. So yes - we could very well bounce in here. You know the list: clx offsets trin put /call ratio adv/decl vix macd stoch All say reversal is due here. I think what takes the time is the MM getting all of their stocks balanced out for the inventory needs of puts anc calls sold. There still is a long time before February option expiration takes place. If they soak up a lot of cheap stock - they can ramp this thing higher faster as they must then give out some inventory with the calls that were sold during last years ramp up. So we see some accumulation at a discount - that may or may not take some more time. But this is the sweet zone to do some buying no doubt in my mind on that. Cast those nets buddy!! <smile> Bob