Can someone explain to me (not offer merely a rationale-ization) why I am sitting here with options positions and stock on these two equities... and on a day like today... not to mention the past weeks, they are grossly underperforming the market while (imho) inferior crapola is rising each day. This has to be one of the most frustrating months I can remember going back to early '90s even though all my short calls will most likely expire worthless Friday. And if these guys ain't moving now... what the heck would happen in any serious correction?! Or would money rotate into the QCOMs and MSFTs?! Thanks. Ice
IMHO: They may hold up better in a serious corrections. The relative performance of CSCO and MSFT in the past five years is a good example.
for the replies... well it's shaping up to be a great day in Chicago.... looks like a beautiful week ahead, and with all the rain over the weekend, it's likely to be a superb one to watch more grass grow!! i.e. MSFT/QCOM Of course, with expiry action, and short sellers looking for "safe" havens... wouldn't it be just great if qcom seeks out 30 and not 32.50. Yep that would top off this fiasco of my not buying 25K+ worth of any obscure crap penny stock in favor of two that anyone would have to figure should (and would) be lifted with the rising tide! Not to mention qcom did raise guidance.... as if that matters, since NVLS essentially warned and so did BBY (11 points ago). Yep... ... so for a limited time, I will be offering my services out as a contrarian indicator... for the month of June! PM if interested. :eek: Regards, Ice
QCOM got all kind of pundits talking about this or that. And how SARS is affecting it, and blah blah! Of course it's noteworthy that many other tech/telecom stocks are immune to any bad news, and moving up. Hmmmmm.. why is that? I guess if you live long enough you'll see and hear everything!QCOM the poster child for the bubble.... a $600+ stock once, and I and others can't make a dime during a large NDX/NAZ move with QCOM now earning 1.40 trading only @ $30!? Inexplicable. Of course there might be an arb back to near 30 so decided to trick the market by selling some front month 30 calls...... this is guaranteed to get QCOM near 32 so we can bank some profit on open 32.50 puts; and maybe take exercise on the short itm calls. If not and it sells off further will bank profit on 5/30Xs. Not a very good position or strategy... but I'm P.O.d And good olde MSFT... doing its expiry thing again as the arbs try to push it nearer to 25 I guess. Well, one just has to trade penny stocks to make dough nowadays. Bubble mania making a comeback! Ice
Iceman... Never try to rationalize the market.. the market does not make any sense.. nor is it ever logical... it has no thought process nor reasoning... At this point QCOM is going down.. so i am short... nothing more nothing less... You sound as if QCOM and MSFT are personally out to get you.... read The Disciplined Trader by Mark Douglas... it will help your problem.. --MIKE
thanks M.... that is good advice... and you are right. Typically when I find myself rationalizing I got no business in the position.... Fortunately I did short the May and June 35 calls when qcom was 34. And shorted May 32.50 calls near 33... so it's not like I won't make out fine. But hard to figure this large move not taking msft and qcom along for some of the ride. Guess I wanted all the marbles and was only looking for a small contra-trend move to 32.50 so my puts would go pooof! NOW IS THAT asking for much with a stock earning 1.40 per share in a sustained NAZ rally??!!? (oops... rationalizing again) :eek: Heck I made more on Surf's crapola SIRI than on my bubble stock QCOM (thanks marketsurfer!). Damn QCOM I hate you! *#*&#!&^^%$*@! Oooppps..... again! OK... gonna log into AMZN and get Mark's book, stat! Ice
Actually.. you might want to read Trading in the Zone by Mark Douglas... its a better read over his Disciplined Trader.. --MIKE
You know, I had always wanted to read Zone... and now might be a good time to order it from AMZN since I am taking off some time in June (and AMZN by the way has seen it's stock price run up while QCOM just sits still, and trends lower with good earnings)!! Damn! Regards, Ice