9/20/2007

As planned, today was a "hen day" -- did nothing except for adding a few NYX Oct 80 calls around 72. The market is having a brief consolidation. Many leading stocks broke out of their recent bases on Tue right after FOMC.

Tomorrow is OE day, so I don't expect much action in the market. My plan is still to sit tight with my longs and calls, and hopefully build a position of AAPL calls if the stock dips down to 139-ish intraday. The reason of buying AAPL calls has been discussed in last nights post with chart.

With the indices getting a 2-day consolidation after a super break out day on Tue and a minor follow through on Wed, I expect next week to be an up week for the markets. It's worth noting that NAZ closed the small gap it left yesterday, which I mentioned in last night's post. Hopefuly, we'll see new highs in leaders such as GOOG, AAPL and AMZN in the next week. Tech is clearly the leading sector right now and I would not be surprised if it continues to lead the market's rally into year-end.

To put it simple:
1. Year-end rally is already happening and we have to play aggressively on the long side.
2. Tech leaders are the most worthwile to play in ths round.
3. Buy/call pullback to 9ma and 20ma will be the primary tactic during this uptrend.


The junk stock CRDC broke out as I expect but sold off right after the gap up and closed near the low of day. I probably will sell it in the morning to free up some funds to build call positions in real leaders -- it is not the very best time to flirt around with trash, although this one does look like it is far from done with its up trend. Gotta prioritize.