Looking At DOW

Looking to buy this weakness...DOW now selling for below book value but will be cash flow positive even at recessions bottom from what I see. It's below net tangible assets and that's when you buy these cyclical businesses. Dow trading at 20 year lows now. FWIW I'll set a stop and plan to use options to hedge. DOW has always had a nice divy....I'm expecting a pop when the merger with Rohm is called of. The Kuwait news isn't that bad...and IMHO was expected. Let's see what the breakup fee is for the ROH merger. I'll wait to buy until the intraday chart shows a little promise...planning on selling some Feb 15 puts to acquire some shares. If I time it right I'll use the cash to buy some Jul 15s or 17.5s with the proceeds to hedge.

today's DOW volume is a wow! thanks, Cirrus, for the heads up. will keep an eye on it, but no hurry it seems to me ...perhaps next year?

The volume is a major factor..... Given the end of year tax situation and everything else I would think we see the sellers dry up for at least a few days. The daily chart and todays volume may make some sort of climactic low that holds for a couple weeks at least. I'm not picking a bottom here as I'll use options with this thing until/if the market eventually turns from bear to cyclical bull. Trying to sell some starter position 15 puts now. I'll wait to see the close today to decide whether to hold on, get on or buy more. I just nibbled on some shares. Again, hoping to use a violent bounce to sell some longer dated OOM calls and buy some puts to hedge.