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Rick Ackerman writes an occasional column in the San
Francisco Sunday Examiner and said in last Sunday's column:
>>As for Microsoft, the likely outcome of its legal problems
is probably too complex to foresee. As a market technician,
however, I'll take the easy route and say, simply, that the
stock's bull market will be over if and when it touches
$75.38. That is 12 points below its current price and 45
points off its all-time high.
Rick Ackerman forecasts stock, index and commodity futures
prices for market professionals in his daily newsletter,
Black Box Forecasts. His Web address is
www.blackboxforecasts.com. <<
JW
-----Original Message-----
From: listmanager@xxxxxxxxxxxxxxx
[mailto:listmanager@xxxxxxxxxxxxxxx]On
Behalf Of wong
Sent: Wednesday, April 12, 2000 11:54 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: [RT] OPT - averaging down on MSFT leaps
Hi All:
If MSFT drops to around $75-76 area, I will be buying WMF AH
(MSFT JAN2002
140 call) again.
First time I bought on Apr 5 at $ 9 7/8, when the stock was
at $88 1/2.
By my options valuation software, if MSFT drops to $75 area,
the leaps may
be around %5 3/4 to $6 area. (The leaps closed at $7 1/8
today.)
This is the way I trade. I'm not suggesting anyone should
follow what I
do. In fact, at least one member
e-mailed me and said he would never average down.
Regards,
Wong
====================================================
<< on Apr 8, I posted this message >>
In fact I'm beginning to buy the MSFT Jan2002 leaps.
I first bought them when the stock was at 88 1/2 on Apr 5.
I take a look at a long term chart of MSFT, draw some
trendlines (note: I'm
a very poor chart-reader, and my drawing of trendlines is
probably not very
good, but...). In my simple mind, I note that there may be
levels of
support as MSFT (may) continue to go lower: at 75, 68, and
finally 60.
These are very arbitrary figures which (however) to me seem
to be quite
reasonable.
Within 3 months or so, the Jan2003 leaps will be coming out.
I might even
average down on the Jan2003 leaps eventually.
MSFT is still one of the world's greatest companies. I
don't see its
demise any time soon. And since its recent high was around
$120, the
probability of it's going much ower than $60 should not be
that great...
Regards,
Wong
=================================================
At 12:04 PM 04/08/2000 -0400, Daniel Goncharoff wrote:
>This brings up a question that has been bothering me: why
would the Microsoft
>ruling be negative for the Naz. Many more companies would
benefit from a
>break-up then would suffer.
>
>Did anyone on this list think, oooooh, I should sell
because of the
ruling, or
>know anyone else who thought that way?
>
>Right now, that 'explanation' smells like media bs...
>
>Regards
>DanG
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