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Special Midweek Update. March 12th, 2003 |
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The overall market moved lower on Monday as I expected. I still believe the Dow Jones Industrial Average will move lower and test 7,286.27 In yesterday's edition of the Sterling Weekly I recommended selling the GE Mar 22.50 Calls if a price of $1.25/contract of better could be realized. For a good part of the early morning, the Mar 22.50 Calls were quoted at $1.35 bid or higher. As the market moved lower and they were bid at $1.30 for a substantial period of time. As a result, I am recording that as our sales price on the Mar 22.50 Calls. This reduces our cost basis on the GE position to $21.90/share. If the price of the calls below $0.50/contract, then I will consider buying them back. If we do not buy the Calls back and GE is called away from us then our sales price will be $22.50/shares and we will have a profit of $0.60/share on the position. I will keep you updated on the developments concerning this. The
Dow Jones Industrial Average: The Dow Jones Industrial Average closed Tuesday at 7,524.06 down 44.12 points. In doing so the Dow Jones Industrial Average closed below support at 7,533.95 and in the process filled the gap that was created on October 11, 2002. Since the Rule of Thumb is that a stock or index will always fill in a gap created on a chart, then it is much better that we have filled this gap now, rather than 6 months from now. This current move lower is actually healthy on a technical basis because it repairs damage on the chart and allows for an eventual move higher. However the chart clearly indicates we can expect to move lower and test 7,286.27 on a closing basis. |
Today's Opinion: Closed @ 7,524.06 Last Signal: Sell Signal on Feb. 24th, 2003 from the closing level of 7,858.24 Current Expectations: The index should move lower and test 7,286.27. The S&P 500:
Comments (3-12-03): The S&P 500 closed Tuesday at 800.73 down 6.75 points. Today's Opinion: Closed @ 800.73 Last Signal: Sell Signal on 2-24 with the close of 832.58 Current Expections: Lower The index should test 776.76 on a closing basis The NASDAQ 100
(NDX) Comments (3-12- 03): The NASDAQ 100 Index closed Monday @ 958.82 down 5.47 points. Current Opinion: Closed @ 958.82 Last Signal: Called lower on 2-24-03 @ 994.69 Current Expectations: The NDX should move Lower and test 951.90 and then 910.13 If you would like to be permanently removed from
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