AI
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| Alias Born | 03/27/2007 |
Wednesday, March 25, 2009 1:28:05 AM
just from experience i know that stocks can go a lot higher even after being overbought. last spring I was saying the same thing about WDC. it had no reason to keep hitting new highs. I started buying puts at $30 then $35 finally it hit $40 and on option expiration it closed at $38 AND ALL my puts expired worthless.
The next trading day WDC dropped to $35 then $33 then they reported "earnings" and it dropped below $30. Two months later WDC was below $10. SO if I'd just bought my puts a few months out I would have made a mint.
I know CRAMER is bullish on DRI. Makes sense as everyone is going out to dinner these days seeing how there is full employment in this country and credit is readily available Of course Im kidding. But obviously someone likes DRI. Funny I thought consumer staples were recession plays not restaurants. NFLX another one that is way overbought and will timber soon. Just not yet IMO. Wait till the market heads higher and people start hopping back into the riskier plays.
The next trading day WDC dropped to $35 then $33 then they reported "earnings" and it dropped below $30. Two months later WDC was below $10. SO if I'd just bought my puts a few months out I would have made a mint.
I know CRAMER is bullish on DRI. Makes sense as everyone is going out to dinner these days seeing how there is full employment in this country and credit is readily available Of course Im kidding. But obviously someone likes DRI. Funny I thought consumer staples were recession plays not restaurants. NFLX another one that is way overbought and will timber soon. Just not yet IMO. Wait till the market heads higher and people start hopping back into the riskier plays.
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