Friday, June 13, 2008

Yahoo and MS Call it Quits

The June590P was available for tight 1.00 per contract profits in yesterday's trading as the market moved in a classic whipsaw. By midday Thursday the market had moved to Dow tops of 12,309, before news of Steve Jobs with Apple being ill led a classic fear move to the market, and Yahoo and Microsoft called it quits. Yahoo shares fell quickly, despite anyone with a brain knowing that those that created Vista could not manage a company that already messed up their golden opportunity before Google came alive.

The poor market can't get a break. BUD, which traders in Blue Chip Options own, advanced handsomely on news of a buy out, and the Bush Dollar began to rise. All was going good. There was and is so much FEAR in the market, however, that Yahoo, Apple, or almost any trigger can create more FEAR in the market.

We continue to see upside potential to our Dow projections.

From historical perspective:

6/16 – Monday before June Triple Witching, Dow down 6 of last 10 but back-to-back 200+ point gains 2002-2003

6/20 –June Triple Witching, Dow up 3 of last 4

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