[Weekend Summary]
Dear Members,
My only trade for the week was entry into a Mar 39 straddle on QQQQ. After entry, the "Q's" cooperated by dropping relatively sharply and gained some implied volatility, both of which are helpful. In this case, the put side of the straddle has benefitted in the short run.
Micron (MU) wound up within 12 cents of last Friday's close. I originally bought the Jan '07 10 calls on MU for $3.50 (investing $350 per contract plus commissions i.e. $3.50 x 100 shares x number of contracts). The calls are now worth about $4.20 a share. The stock is now lingering just beneath a little resistance. A breakthrough could lead to another dollar move for the stock.
EBAY is compressing into a triangle indicating that a move is coming (we just don't know which way). The stock just bounced off a price support and looks as though it may break up through the downtrend line. Failure to break through will probably be the exit bell for me.
Siebel Systems (SEBL) is now wholly dependent on the movement of Oracle (ORCL) and ORCL has been retracing. If it can bounce off support, the SEBL LEAPS should regain some life.
While the markets look dangerously weak to me, they did have a modest up day today. The SP-500 bounced at a price support level, but without convincing volume. The Nasdaq turned up from a support level on greater volume which is encouraging to the bulls and the Dow 30 also turned up but only on average volume. The direction from here is not yet clear.
I hope you have a great weekend.
Bill
|
