The Dow has made a nice rebound from yesterday’s shellacking and is currently up 72 points to 7,914. There were a bevy of earnings announcements this morning, both good and not so good, but better-than-expected results from a couple of Tech companies have helped things. People are still buying Tech stocks…
The Nasdaq got a pop after Texas Instruments (TXN, $17.07, down $0.25) posted a surprise quarterly profit and the continued M&A activity. Broadcom (BRCM, $19.77, down $2.02) announced plans to buy Emulex (ELX, $9.51, up $2.89) and Amazon.com (AMZN, $78.42, up $0.85) continues to trade higher. The May 90 calls (ZQNER, $1.75, up $0.16) have hit a high of $1.83.
IBM (IBM, $101.60, up $1.17) is trading higher but the May 110 calls (IBMEB, $0.52, down $0.48) are just pennies away from hitting our 50% stop loss. I would be a little loose with this one and maybe lower it to a stop of 25 cents. We have some good profits with quite a few other positions and I like how IBM got back over $100.
We are still in a trader’s market and like I said, it’s okay to cut losses early or take profits early until things settle. And I don’t want to be trading just to be trading. That is why I’m holding off on new positions and closely looking at the ones we got.