OptionsHouse

Options Trading News

March 22, 2013  Fri 8:15 AM CT

CSCO: SEE CHART GET CHAIN FIND STRATEGIES
Why don't people sell more here? I have written endlessly about the issue of seller's remorse--that you can't get back in, that you watch the averages go by without you, so you just go buy something, anything.

But was anyone really surprised that the market was down yesterday, considering Cisco Systems, Oracle, Airgas, and the terrible European purchasing managers index numbers, on top of the Caterpillar and FedEx situation from Wednesday?

Don't you think it is logical to sell? The market isn't made up of only homebuilders and things that go into houses.I am puzzling over this, because in any other market that we have been in since the beginning of this millennium, we would be down huge.

TheStreet.com logoWe haven't seen this "everything is a one-off" attitude since the days when the market used to shrug off a U.S. Robotics downgrade, for heaven's sake. Every problem is being viewed as a company's own fault, not a tell on its sector or the economy, and then people think that the company will fix it by the next quarter.

This isn't forgiveness. It's a get-out-of-jail-free card.

Now I have been a believer that the U.S. economy is getting stronger. But I am also a believer that we are not ready for the sequester firings.

I am a believer that our markets are strong, aided by Ben Bernanke's bond buying. But I am also a believer that Europe is horrendous and, for all I know, a lot of what's ailing Oracle really is Europe--the company was pretty silent on it--plus a cutback in government spending here.

I am not a believer that Cyprus is Lehman. But I am a believer that Cyprus will color next week's trading.

I guess I am just marveling as everyone else is. We should be down hard.

Where are the darned sellers?

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


Related Stories

CSCO

Traders bet Cisco Systems will hold gains

May 20, 2016

The networking giant rose yesterday after beating quarterly results, and traders are betting that shares will stay on solid ground.

CSCO

Traders bullish on Cisco before earnings

May 10, 2016

The network-technology giant is up 16 percent in the last three months and is drawing bullish option activity ahead of quarterly results next week.

OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »