AAPL

2/2/2010 - UPDATE

Obviously, with the price movement following the debut of the iPad, we have held off on our consideration of a new entry into AAPL.  It now looks as if AAPL may also be rolling over with the general market so we’ll sit tight for the time being and watch the show.

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1/27/2010

With the announcement of the new iPad and the pricepoint it will be selling at ($499)… we are looking to reenter AAPL yet again as a Long-Term Option position.

Tomorrow we will evaluate our entry criteria and report our conclusions.

Coach BD

We don’t like what we are seeing right now and it appears we may be headed for a significant correction.

The ST 20-Day trend has rolled over and is crossing the 50-Day MA on the way down.  This is called a Bear Cross is, obviously, a bearish sign.

We are also bumping up against LT resistance on both the Weekly and Monthly Trends which are both still leaning bearish.

We see possible downside risk to ~9,000 on the DOW if we don’t break back above the reisdent resistance just above current levels.  Everyone check out the Daily, Weekly & Monthly trends and evaluate whether or not you agree or dissent.

Coach BD 

ARMH - Arm Holdings Limited

ARM Holdings has been a Core Position for us over the past 8 - 10 years, though not the past 2 years, as we thought they were in kind of a rut.

Well… they are clearly out of their rut and finally getting the attention they deserve.  ARM processor design IP is in more than 60% of all cell phones on the planet, and there are now an average of 2.4 ARM designed processors in each of those phones.

We believe they are entering what’s known as the hockey stick growth phase…  We will be buyers of ARMH on a clean, high-volume BO above $10.00

We are looking at the Synthetic Long JUL 2010 - 10 Call/Put Combo.  SELL the Puts to buy the CALLS.  Today we could have entered this position for a ~$.30 CREDIT and at a $.10 DISCOUNT to the closing price @ $9.81

Keep an eye on ARMH.  They are a young Gorilla in the mobile market and are expanding their IP reach into new technologies, much like RMBS without the litigation. 

VIX

We will be evaluating a new VIX entry over the next week as the averages attempt to break back above ST resistance.  If they fail, we WILL be entering a significant VIX position as a downside trade and hedge to any LT Long positions we are maintaining or may be entering.

More on VIX tomorrow.

Coach BD