We established a new market axiom yesterday to go
with two “tried-and-trues:” First, if you buy tech stocks, buy puts. Second, you don’t buy
airlines, you rent them. Third (our new one), when Greenspan speaks, buy straddles.
The good news is the market got to new highs by the end of the month–1283.89 intraday in the
S&P cash–before getting blown out at 2:30 p.m. eastern time (see ya later, bonds).
The SPDRs lost three points (128 to 125) and closed at 125 1/4.
If A.G. crawls under his rock today, maybe they can get the market going again, but
it will be extremely difficult to close at new highs by tomorrow. Early March could see fear
Target Stocks Of The DayÂ Â Sanmina [SANM>SANM] and Broadcom [BRCM>BRCM]
both made good moves yesterday and pulled back to their entry points. Watch for early entry
opportunities today if the market starts to rally.
MySoftware [MYSW>MYSW] and New Era of Networks [NEON>NEON] are consolidating near their highs;
look for continuation entry in these stocks. IBM [IBM>IBM] pulled back and closed at 173 3/4,
just below its 50-day EMA of 174.09. Look for entry on a re-cross of the 50-day if they come
after techs. Circuit City [CC>CC] can be played on an early intraday buy pattern.
Needless to say, be careful; it’s a very skittish market.