OptionsHouse

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


Related Stories

CSCO

Cisco receives vote of confidence

June 2, 2015

The networking-technology giant pulled back from its recent highs two weeks ago but has since held support with its rising 30-day moving average.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »