all i can say is there is huge selling pressure right now on intc.....if it wasnt for the MM AUTO today pushin it up repeatedly intc would have been down to $19 even today or below........not sure what Auto was thinkin but they bought a few million shares today at the 19.17-19.22 mark when if they would have just let the stock drop they easily could have had all the shares they wanted at the 19 mark.....i just dont understand these MM doin illogical things like trying to holding up a stock that is tanking on a day when the S&P is also tanking.........somebody should be fired over there IMO! k...well not sure if it was AUTO for certain...but they were one of the two or three big buyers today....i still dont understand why you just dont let the stock tank like it wants to if you want to buy it for either a long position or covering a short....any moron coudl have told you today it was going to tank....why keep buying while the s&P is dropping
Even if INTC does not come up with a good earning, it might go up $2. All bad news are priced in. Now the question is what to do now? There are 3 options: 1- Forget about INTC and invest in other stocks. This might be a good option for many investors. 2- Wait till you see the bottom and then start to buy. Don't buy it now because it might go down 3- Buy it now even though there is a chance that it might go down more a little bit more because I don't want to miss the sharp up movement of the first two days. I like to go with option 3. INTC is definitely underpriced and if I wait I might dodge the possible 20 cents more drop but that is not worth of losing $1 run up if it changes the direction. I have bought the shares at 19.64 and have sold the call for 0.4 and I am still holding to my shares. Any other investment could have more risk. I think the best strategy for those who want to nibble in is to buy the shares and sell call 20 April for 0.15. That will bring the purchase price down to 19 and the possibility of $1 profit in 8 days. That is about 5.5%
My take on INTC is that its a stock that is breaking down, that institutions are using for a source of funds one that well-offered on multiple timeframes. For me as a trader in my 28th year of reading the tape -- its an issue of flow and energy management -- why waste energy where cash is flowing out not in. Stalk those stocks that are having lower timeframe reactions in higher timeframe bull markets, like AMD, CHS, EWZ etc. Iâm currently stalking biotech very selectively here. I go into a more expansive take on where the money is flowing and will keep on flowing on my blog. Iâll also forward you (and anybody else who ask) my current watch list of stocks (and commodities) and my daily trading plan Use the "BUY LIST" button, right-hand column at: http://www.street-noise.net/articles/
I agree. INTC is in a world of hurt. From a T/A standpoint the chart is horrible. The Sept '04 $20 support level has been broken and did not hold. The next major support level is $15, based on the Jan '03 low. Analysts have been slashing estimates. 2007 consensus has been cut from 1.85 to 1.27 in the last few months. Using a forward P/E of 12x, the 1.27 estimate works out to $15 and change, matching what the next support level suggests.
DonnaV Actually i misquoted General George Custer. He actually said: "HolySHIT, Will you get a load of all dem dar fucking indians" Now, i know in your mind you are surely wondering how i could come up with this assumption. Well, well do not feel lonely, i also wonder why you failed to think it is possible to trade a stock in freefall without a lunch point. O, sure, some get lucky once in awhile but not for long. General George Custer surely would have stopped entering the battlefield if he had a smaller ego and saw all dem dar indians. Losses are part and parcel of the trading game. Trading with stops is an old axiom just as the saying about custer when someone gets blindsided and should have known what was ahead. No more posts regarding this subject......Good Luck... :eek: