Trade Alert: Nasdaq 3k and buying common stock in this flash maker
And there you have it — Nasdaq 3K. I’d written a few times in the last week that it seemed like the Nasdaq was being almost magnetically pulled to 3k, despite how arbitrary and meaningless such a round number actually is. Boy, it just barely made it:
NASDAQ Composite (^IXIC)
2,993.42
6.66(0.22%) 10:28AM EST
| Prev Close: | 2,986.76 |
|---|---|
| Open: | 2,991.67 |
| Day’s Range: | 2,989.65 – 3,000.11 |
|---|---|
| 52wk Range: | 2,298.89 – 2,988.59 |
3000.11, and then a pullback. Strange, really. But ultimately, meaningless. You will hear a lot from other pundits how about supposedly important the Nasdaq 3k and the DJIA 13k thresholds were if the markets are to indeed close below those levels today and for a few more days. Remember when Apple hit $525 and then reversed to $500 intraday and all the pundits said that was really “important” somehow for the markets and for Apple. Both Apple and the Nasdaq have hit yet new highs again this morning. That supposedly important Apple reversal wasn’t. Nasdaq 3k and DJIA 13k are equally unimportant.
I’d mentioned on Monday that I was looking to add to my Sandisk position. I went ahead and just bought some Sandisk common stock instead of options for now. I’ve still got some Sandisk calls on my sheets from previous purchases and most of you remember when we loaded up on Sandisk back when it was in the $30s and low $40s, though we’ve obviously sold down some of those calls as noted as the stock ran back up. At any rate, Sandisk remains extremely cheap with a ton of cash and selling into a flash storage market that is the future of most computers, servers, cell phones, DVRs, and everywhere else you currently see a hard drive. The stock and chart stabilized here in the high $40s and I think this one could try to break out over the next few months. We don’t have to rush into an outsized position all at once though. So I added some Sandisk common this morning.
