Take out your caculators, guys. Here's what's happening:
1) Number of accounts in Ameritrade is growing at a pace much faster than 11% a month. ((98000x111%)x111%)x111%
2) Average customer trades per day jump from 8617 to ??, you can see the boiling on NYSE floors.
3) Asia turmoil is feeding up Ameritrade in Oct,Nov,Dec,Jan, and beyond.
This is the right company which is keep going, and going, with SOLID fundamentals and BRIGHT 1998.
I prefer to enter this stock at a comfortable price, say $40-55 per share, while expecting the following:
1- earnings forecasts for 98 and 99 will surely be lowered 2- any hiccup during 98 versus the forecasts, will
result in one or more reality check days
3- and how well management deploys the $8 Billion in cash is yet to be determined. How would you like
them to buy another tech stock company, only to have dilution turn sour, as well as the institutional buyers
I would sell at a price 5% above each of the levels
Level $40, dump at $42, remember most likely there will be a dead cat bounce at each of the support levels, it seems that INTC shareholders read the technical analysis book, and follow the script verbatim.
sold out my most of my positions in intc this summer. can't take another tech blow up. took a position in LWN where the chairman just bought 2.5 million shares. no foreign exposure, no southeast asian exposure, no currency problems, all revenue from
U.S., demographics are great, valuation lowest of its peers by at least 1/2, and growth rates are a steady eddy 15-20% year, but most assuring is that an insider just bought 65 million dollars worth of stock. finally i slept well last night. best of luck to all.
Does selling puts just above(say 5%)each support level make sense to you. I am making a killing as of late selling longs into each $10 point move, and letting the greeedy bunch, swallow hard, after I have sold to them.
Currently, I am long regional banks, and short tech stocks(what a steal).