EMC Corp Upgraded
September 24, 2007 | Posted by Jorge EMC Corp (EMC) was upgraded by Bear Stearns and Citigroup this morning. As a result, shares have skyrocketed 5%, or about $1. Why is this important? The bulk of my portfolio is currently tied up in EMC contracts. If EMC can break through the $20 resistance level, I would expect another 5% or so this week as the stock takes off. It’s currently holding at $19.99 with it’s intra-day high at $20.00. EMCJT contracts are currently up 100% in today’s trading. You know you’re a stock junkie when this brings a huge rush to your Monday workday. Stay tuned.
Update: And EMC’s taken off! We’re at a new intra-day high of $20.19. Let’s see how high EMC can go this afternoon.
Update: EMC’s peaked at 20.25. I’ve gone ahead and scaled back from 15 contracts to 12, or a 20% reduction. While being up about 40% feels good, it wouldn’t feel great giving it all back if something were to go wrong. Lesson #1 in the stock market: If you have a profit, take some off the table. There’s no shame in making a smaller profit. Better to realize a gain than a loss.
Update: EMC’s hit an intra-day and 52-week high of $20.29. It has since retreated to the 20.20 level. A close above it’s 52-week high would be a blessing!
Update: Houston, we have a problem! New intra-day high of $20.49. It’s amazing what a breakout can do to a stock. The $20 resistance level is history.
Closing Bell Update: EMC Corp hit an intra-day high of $20.55 today. It appears that EMC will close in the mid $20.40 range. It’s been a great day if you were patient enough with a company such as EMC. I expect the same from other companies such as Level 3 (LVLT).
Disclosure: Currently long EMC Oct 19 Calls x 12
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