Thursday update - 04/22/2010

Wouldn't you know it.  As soon as I loaded up on BCSI, it turned around and started heading down.  After two days of fighting my urge to sell it, it looks like it has shaken out some weak investors and we might be headed up again.  Had a great day in the market. Made money in BCSI, MLNX (almost a 100% gain - with my prediction of more to come - although I might sell tomorrow if I get another nice jump) and the big gainer of the day was Chipotle Mexican Grill (CMG).  I almost bought some options in it before earnings but didn't want to commit so much money to options.  The stock jumped 17+ dollars today.   As I mentioned earlier, AMD is worth watching.  I almost bought the May $10 calls this morning for 0.28 but didn't.  By the end of the day, those options were hovering around 0.40.   There is a buildup of calls that is happening at the $10 mark (potential resistance), but if it breaks thru, we could have a covering rally.  Some website (Motley Fool) also surfaced a rumor about AMD executives visiting Apple offices for some kind of CPU deal.  AMD already provides high end graphic chips for the Apples (thru the ATI acquisition).  If that does get announced that would be a BIG deal for AMD.  Which brings up the question of what maturity options shall be purchased?  Since I think the market is going to peak (in general) in May, its hard for me to recommend or buy the July calls but those seem to be the best target for letting the stock run to 14 or 15.  I don't see why AMD can't achieve that target unless the market peaks and holds the stock back.  Both daily and weekly charts show nice cups with handle.  The stock tried to break thru (and did) about a week ago, but fell back into the base.  Looks like its going to try again.

Let me reiterate, that a market peak in May does not necessarily signal the end of the bull market, but a sideways market could begin (with 10-20% pullbacks).  Time is the ultimate enemy of the options if you buy them at the wrong time.