Sitting Out This One

When you combine a bevy of earnings reports along with expiration Friday, there is a setup for some major fireworks over the next 24 hours. I have done quite a few charts, but I am actually going to sit it out tonight. There has been a lot of action today, which I believe creates even more uncertainty into these reports tomorrow. While I feel there are a few decent setups, I just haven't had the time to map out the plays on top of the charts.

Microsoft (MSFT) Source: StockCharts.com View Chart » View in New Window »

Microsoft (MSFT) looks to have the same setup as we saw with Intel (INTC) and Qualcomm (QCOM). Downside risk looks a little more contained, but with a strong year-to-date run already in place, I would not be surprised to see Mr. Softee test the $30.35 level on the chart. I'm really not looking to be a buyer, though, unless we see Microsoft pull back to the $28.50 area and hold. Upside appears to be around $32. Options are pricing less than a $1.00 move, so a straddle can be given some consideration at around $31....388 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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