Doctor Jack's Stock Medicine

[Jack Haddad]

Intc

I expect this to close near the Low of the Day. What are your thoughts Jack?

Alice, I was particularly happy that it closed above the dialy resistance of 17.70. Had it closed below the daily opening of 17.57, I would have worried.

[Jack Haddad]

Tol

Today's strength (TOL) is challenging the monthly resistance of 26.90 to
27.10. Though outer bar reversals are quite evident, the stock is
severely oversold on a technical basis ad undervalued fundamentally. The entire sector trades at a discount of 7 times 2006 earnings. The trim im estimates for the remainder of the year has laready been factored in in the share price. The stock is down a staggering 60% from the 52 week high of 57.50. Moreover, TOL's cloe alliance with many Joint Venture Capital Firms is aiding them in buying and elling land very quickly to flip profits for the company

[DSteckler]

Intc

Shorted 2 blocks at 17.74

Still short? A close above the 20-day EMA could signify a change in short-term trend direction.

[Jack Haddad]

Intc

Still short? A close above the 20-day EMA could signify a change in short-term trend direction.

Dave, I'm still short. I just don't trust the stock too much yet. Besides, those two short blocks, at worse, will hedge my long blocks.

[DSteckler]

You're also long? I thought you were short only right now?

[Jack Haddad]

Yhoo

Bought 3 blocks at 31.57, and wrote 300 calls at 2.00

Bought back 300 June 30.00 calls at .40 and wrote the July 30.00 for 1.65

[Jack Haddad]

You're also long? I thought you were short only right now?

I have been holding a long core way before I came to this board.

[DSteckler]

I have been holding a long core way before I came to this board.

Priapism, eh?

<VBG>

[Jack Haddad]

Markets

I and many of my fellow colleague managers are advising clients to sell this rally. Technicals at this time remain uncertain due to very oversold conditions. The downtrend on the Dow which began as a result of Dow breaching 10078 is till intact. I'm not regarding today's upside as a reversal in the trend. I'll be looking for short set-ups on particular picks (BA), and also some very undervalued stock which have not moved much in the last couple of days (EBAY).

[Jack Haddad]

Intc

Yesterday, the company bought 560k shares betwen 17.33 to 17.50 pre-trading hours; that explains the heavy volume of 111 million. I'm not thrilled about INTC's behavior to support a bullish trend. Today's upside is particularly questionable on below average volume.

[Websman]

I and many of my fellow colleague managers are advising clients to sell this rally. Technicals at this time remain uncertain due to very oversold conditions. The downtrend on the Dow which began as a result of Dow breaching 10078 is till intact. I'm not regarding today's upside as a reversal in the trend. I'll be looking for short set-ups on particular picks (BA), and also some very undervalued stock which have not moved much in the last couple of days (EBAY).

I must agree with you Jack. Two up days do not make a rally.

[Jack Haddad]

I must agree with you Jack. Two up days do not make a rally.

I agree...

[Jack Haddad]

Adbe

ADBE lower estimes or 2006 profit and revenue on weaker demand for its content-creation products. The stock is a strong sell fundamentally and will retest lower lows and breach the 52 week. It's unfortunate that one cannot short in after-hours trading.

[Jack Haddad]

Markets

I remain convinced that were in a bear market rally. I estimate that the Dow at 11,000 is a major wall of resistance, and the S&P 500 would be 1240-1255. Also, financial stocks are in a major trouble. Take a look at the 3-month chart of C, BAC, PNC, WB, JPM, STI, and CBH. Theyre a screaming sell. And, of ourse, do not forget about emerging markets-- The sell-off ain't over yet.

[df21084]

What to do with all this cash

Based on most recent regulatory filings, industrila companies in the Standard & Poor's 500 with the most cash, in billions, are the following:

1. Exxon Mobile 36.5
2. Microsoft 34.8
3. Johnson & Johnson 17.2
4. Pfizer 15.5
5. Cisco Systems 15.0
6. Motorola 14.6
7. Aetna 14.4
8. Merck 12.4
9. IBM 12.3
10. Hewlett Packard 11.9

Is this a good thing, or is this a bad thing? Should one expect companies with lots of cash to buy back shares and/or increase dividends, which I think is a good thing, or are they sitting on boat-loads of cash because there's no potential for a better ROI than a money market account?

I would appreciate any and all responses.