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

To: Porter Davis who wrote (805)	1/6/1998 6:35:00 AM
From: Porter Davis	Read Replies (2) \| Respond to of 1598

Options update for Jan 5...Nothing like a week off to lose the touch. Well, I got back in the traces yesterday after a week visiting friends in Cleveland, and boy did the market spank me. I managed to sell Ballard on the low, as well as buying Inco on the high. These are things I really try to avoid. Of course, if it were easy, the joint would be so crowded you couldn't move. ABX: The recent happy-talk about gold gave me a little warning...I wasn't really surprised to see bullion collapse like it did. We need to see some real blood on the streets before any real rally can occur. Gold is at 18-year lows, and Barrick should be around $10 lower if it were to correlate to where it was when gold was last at these levels. Decent option trading, although no panic. (43,45) BCE: With US rates at all-time lows (at least on 30-yr bonds), Bell should be pretty attractive. However, the CRTC will have something to say about Bell's main business--phone calls--and it seems like even more competition is ahead. When I got home yesterday I found a flyer in my mailbox advertising .07c/min LD rates for anywhere in Canada any time from LondonTel. I wonder how Bell's profit margins will hold up in the face of such pricing competition. (25,26) N: It seems the takeover talk concerning Inco has died down, but when Inco took off yesterday, I didn't want to miss the boat and managed to pull the trigger, buying some at the exact top, and worse still, I didn't sell it back when it started to slide. Bad mental hygiene. This should be the stage of the bull market when base metals and oils do well, but this deflation spectre has really skewed things. Falling prices do not do anyone any good in the long run. Very few people alive have experienced deflation (no, I'm not one); it is nasty business. I'm beginning to think it's coming, though. Commodity prices, gold, interest rates are all pointing that way. Cash will be king, and you won't want to own anything. (43,41) BLD: I can't make heads or tails about Ballard. It has lost a little of its extreme volatility, so another big move could be ahead. Which way, I haven't a clue. Haven't seen any arbitrage action from the US listing. Does anyone know how they're trading on the P-coast? (58,58) The 'wise-guys' and major brokers will do everything in their power to make this an up week so the January barometer will be positive. I'm begining to think we may see a 6000 Dow by year-end. Three days til the Stones play Toronto. Getting psyched. Happy trading. Porter