INTC

[Jack Haddad]

INTC is a very safe entry for those thinking of establishing a position. The stock is above all simple and exponential moving averages-- a very healthy sign of an uptrend. The consolidation/basing which occured in the arena of 24.20 to 25.90 was of large blocks of institutional interest. The stock is being heavily accumulated, so reveals the 1 month chart.

If you desitre a fixed income from this stock for the month of Dec-Jan of 2005, consider buying the stock at current levels while selling Jan 25 calls. The stock will most likely be taken away from you by Jan expiration day, and you'll pocket a nice premium as a result. If the stock closes below 25 by expiration, no worries... Write the February 25.

Tomorrow, I'll commence with a purchase of 15k shares. Depending on the strength of the stock, I may or may not sell options as I indicated above. My goal is to establish a 50k shares before the final run of the uptrend.

Jack

[Jack Haddad]

INTC is strong on the hourly chart today-- a perfect example of a stock that is discounting yesterday's lack og gain in a positive market! G/L

Jack

[Jack Haddad]

Bought 20k shares of INTC at 26.45, and sold 150 Jan 25 calls for 1.75/contract. Let them take my stock away at 25, and I'll pocket .30 cents a contract...or if INTC closes below 25, I'll pocket everything and add more shares to dollar cost average.. Both are good.

[Jack Haddad]

INTC has notr received dues since the Dow's rally from 10760. Now, the Dow stands at 10922, threatning to challenge the 5 year high! Since INTC is stock of discounting mechanism, look for a violent surge to fill the gap to 27.50

[Stocktrading101]

Interesting, what do you make of the two high volume days wednesday and thursday. 92 mil shares on wednesday and 70 mil on thursday; the stock closed in the lower half of the day both days? Was that institutions taking positions still, or is that just overhead resistance? Today has been an interesting price spread so far. I think that 50 MA is going to have to pull above the 50 MA for strength if it wants to press $27.50+.

12/02 to 12/09 was heavy consolidation, and I agree with the institutional support at the 200 MA. As soon as it hit it, it bounced hard. I would assume players who were in since before the original run to $27.49 were taking profits.

[Jack Haddad]

The behavior of the stock in the last 3 days has been that of consolidation. We have seen that between 26.80 and 26.45. This is very healthy, indeed. Quite honestly, the violent surge from 22.58 to 24.85 was overdone...and I thought that we would retreat to 24.00 and base there for a while. However, institutions got all over the stock, especially Morgan Stanley. They purchased nearly 1.8 million shares in 4 days on an average cost of 24.60. Other players were Smith & Barney, 800k shares.

So, I'm not concerned about any fundamental or technical issue at the moment. As I stated in the past, Andy Bryant, has been very conservative in his quarterly updates... For that matter, come Jan 17, 2005, he will guide higher on both revenues and gross margins... and the stock will rock. We have in the 20s way too long. Bare in mine, that were trading between 33-35 in 2003 when INTC's revenues were below 10 billion... and at that time, there was no buy back plan for any shares nor was there any increase in dividend. The buy back of shares should decrease the outstanding shares available and thus increase the value of earnings per share. So, in the final analysis, the stock should see mid 30s by March of 2006 at the very least.

Technicals are still intact...I don't see a break in the uptrend.

[Jack Haddad]

I like the intra-day bounce from 26.20

[Jack Haddad]

A close below the 26.20 technical support will force INTC to test 25.75