Mr Buffett buys based on deep valation basis and charts stinks.
It means closing your nose and look at the potential down the road.
How many would have bought NVDA or SWIR few months ago.
I made more money on CSCO when it bottomed out using options. Stock moved 3% - options moved up 50% in the same time frame.
I use the simple rule - DO NOT BUY AFTER THE STOCK HAS BEEN HIT DUE TO EARNING RELATED NEWS. WAIT 10 DAYS AND THEN WATCH WHEN SELLING OR VOLUME DRIES UP
CSCO volume driesd up on last trading day of November. REAL buy signal was given on DEC 27 for CSCO. CSCO March 19 options traded for 1.2 that day - now at 2.38. Do the math.
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January 18, 2011
Edited: January 18, 2011
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