Focusing on Salesforce.com

Earnings yesterday felt clear. I looked at some charts and options and made some trades. Other days, like today, I can stare and stare, and the trades feel almost like losers from the start. For instance, Mentor Graphics (MENT) has a great price pattern setup, yet none of the other indicators confirm its current move. So, while I would like to initiate a long September $15-$17.50 call spread, I just can't justify it.

Salesforce.com (CRM) will be the main focus today. I can't get behind the valuation on this company, but I have to say the chart leans bullish. The last time I went with my gut rather than the chart, I was skewered. Options are pricing in 10%, as players seem to be looking for around $132 on the downside and $161 on the upside. I have $140, then $130 as the downside targets with $160 on the upside, so it seems appropriate. The downside does have one other target at $118, so lotto ticket players may want to keep that one in mind....449 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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