Learn the trade here. Make it on tradeMONSTER

Options Trading News

May 17, 2013  Fri 8:13 AM CT

CSCO: SEE CHART GET CHAIN FIND STRATEGIES
At last, we have a breather. A day when we can catch our collective breath and look at the merchandise to pick, not chase. There are so many companies that have roared ahead that, when they finally come down, it's almost as if you can hear people say, "At last, a chance." Of course, will they take it?

I doubt it. If anything, I think that the shorts will come out and bang down stocks hard because they sense that they have a chance to make back some points. The heavily shorted stocks will fall the hardest--and not because of profit-taking, but the same old gang-tackling.

TheStreet.com logoI think that real sellers, volume sellers, aren't here and volume buyers are much lower, so we are in no-man's land. No earnings. No news. So this is just a breather where we extrapolate the good (Cisco) and the bad (Wal-Mart).

My takeaway: I want this breather. It is an opportunity to assess and choose. But I bet most people--except the shorts--will do nothing. They are just too scared to buy unless everyone else is.

Disclosure: Cramer's charitable trust is long CSCO.
Share this article with your friends


Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER