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James Charles wrote:
>
> Hi Guys,
>
> Are any of you following DELL? From a technical point of view I think
> the daily chart is WEAK. However, I understand earnings news is due on
> it. Do you know when or what the whisper number is?
>
> I think the overall market is up against short term resistance
> tomorrow. We'll see.
>
> Best wishes,
>
> James
>
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I've been trying to catch weakness in Dell for a long time now. It has
unbelievable popular buying power. It seems to chart fairly well and I
have learned to cover the cost of options positions quickly and just
hold profits waiting for the break.
Fundamentaly - processor prices are weakening quickly, RAM is dirt
cheap, and drives are over supplied. Therefore cost of goods should be
way down. I just shelled out $6K for a Dell laptop, so I know the sales
prices aren't coming off. The only things that could get them are
currencies, but they probably learned that lesson the last time, or just
plain screwing up in manufacturing.
I also believe that most people have had positions rolling forward and
probably made the last significant 'new money' commitments at the last
split, therefore they are all $20 - $30 profitable and can take a lot of
pain before pulling the sell trigger.
Some day this will provide a nice ride down.
Good Trading - Rod
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