Our SUNW Spread Is Already Paying Dividends
Nasdaq
stocks continue the rally that got kicked off last Wednesday as technology
stocks seem to have moved from untouchable to unbelievable. The much ballyhooed
resistance level at 2250 was pierced early on in today’s session and looks to
become support if the Naz can indeed close above that level.
We maintain our view that the Naz has more upside potential than does the Dow,
but both indices are once again basking in the warmth of investor sentiment.
Since the April 4 low of 1638, the Naz has rallied 34%, the
Dow some 21%. Like most of you, we are waiting for the pre-announcements of
corporate earnings (ahead of their various quiet periods) to see whether the
bulls still rule, or whether the bears get to take another turn in the
driver’s seat.
As for today’s bullish action in some key Nasdaq issues, we’re watching Siebel
Systems
(
SEBL |
Quote |
Chart |
News |
PowerRating), Tellabs
(
TLAB |
Quote |
Chart |
News |
PowerRating),
Brocade Comm.
(
BRCD |
Quote |
Chart |
News |
PowerRating) and Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating). Why? Well the put/call ratios, whether outright or dollar-weighted,
show investor sentiment is mirroring the action in the underlying issues, which
is decidedly bullish. On this list, SEBL is displaying the most bullish action.
We’re looking to establish some additional positions on SEBL and BRCD later on
today. Check our updates on www.1010WallStreet.com
later in today’s session for exact details.
| Symbol
|
Call
Volume
|
Put
Volume
|
$W
Call Vol
|
$W
Put Vol
|
| EMLX
|
13,227
|
620
|
115,172
|
1,805
|
| TLAB
|
7,561
|
547
|
44,305
|
1,562
|
| BRCD
|
9,309
|
916
|
103,155
|
3,881
|
| SEBL
|
8,086
|
2,110
|
41,665
|
6,518
|
As for both Sun
Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) and Veritas
Software
(
VRTS |
Quote |
Chart |
News |
PowerRating), we’re following a trail of blood from the
bears, with institutional buying pushing up shares and pushing down
volatilities. As regular readers remember, we targeted a bullish play in SUNW on
May 2, “BIG Buyers in
SUNW & CSCO Options Create Interesting Opportunities.â€
Volume
Volume
Call Vol
Put Vol
(1010WallStreet.com has licensed
the use of Hamzei Analytics proprietary options analytics)