It seems that INTC will drag tech stocks down tomorrow. Glad that I followed my "feeling" and shorted at 28.68.
Today I unloaded my remaining QQQQ's, and sold Aug 37.5 calls against SMH's. IMO, the risk/reward ratio of being long is not good.
Story 1:About 2 weeks ago I bought some shares of INTC at 26.50 as I thought I can sell it at 27 but I was wrong. It went down and hit 26 and I was happy to get out at 26.55. In just a week it hit 28.80 today. It was obvious that one of those prices should be fake (maybe both are fake) since 26.50 lasted for a long time, I was feeling that 28.80 should not last. Story 2: I bought ADI 2 months ago at 34 in an intent to sell at 35 but I got out at 34.30. Now that I see ADI at 41, and nothing has changed and the only thing that has changed is that oil is up from 47 to 60 and interest rates are up. I believe again that we should see some correction. Story 3: TXN was 23 about two months ago and now it is 31 without any change in the fundamentals. A reasonable price in my opinion would be 26. Note: My hot pick to short is WIND. It is super extremely overvalued. More that $1.5 drop in a month is almost guaranteed.
That is what I posted earlier and I held on to my calls and now it is looking like a mistake....Oh well...live and learn..but there is still tomorrow.. Congratulations to anyone who shorted or purchased Puts on Yahoo today!
That is what I posted earlier and I held on to my calls and now it is looking like a mistake....Oh well...live and learn..but there is still tomorrow.. Congratulations to anyone who shorted or purchased Puts on Yahoo today! Don't worry, that happens. Usually when we get a big profit in a very short period of time, we want more. We believe that holding to the position will bring more profit. That is not true. I sold 20 PUT for INTC 27.5 July at $0.1 !!! and as you know I got short at 27.5 and it went to 28.80 and eventually I covered today at 27.40. I also shorted today and covered at 27.40. I got more money in shorter time than those PUTs. If you want quick profit, short WIND tomorrow any price over 17 at almost open as I believe it will go down during the day and cover at 16.50 or lower. If you wait a little more,you will definitely be able to cover at low 15. Do your own research. Good Luck.
I didn't follow any of the outside links, but it's worth noting that summer is traditionally a slower quarter for many tech companies. One example that I'm very familiar with would be Nvidia, they have a tendancy to warn in early August. Great trading stock though, fairly predictable, and fairly easy to follow if you monitor any of the tech rumour sites on the 'net. Current chart looks like a triple top to me.
I am happy that did not fall into the trap of market has legs or buy it because Cramer says so. My experience proves that sometimes market does not get affected by high oil price,inflation, lots of job cuts, low hiring, terrorist attacks but starts to go down with a sneeze. When market does not react to the above actions properly, it does not mean that it has legs, it means that the reaction is delayed but it is coming , when? I don't know but it will be soon and you will get trapped.
If you look at the BRCM weekly chart there is (was) a gap at $42-43. I say 'was', as it filled afterhours today... I went net short at the open today in other stuff... e.g. LM