George Zabel

QUALCOMM Inc (NASDAQ:QCOM) appears to be making a short term top on the charts. If markets do correct lower as it is expected, this stock has plenty of room to the downside, which can be considered as a discounted entry price for going long again.

Microsoft Corporation (NASDAQ:MSFT) keeps on rallying confirming its strong longer term technical outlook, but for the shorter term, a double top and a bearish divergence are foretelling of downside potential, that could bring the stock few dollars below its current $29-something level. Microsoft is a good candidate for Put option buying with the objective of getting out near its 50 day M.A. at around $26, and possibly entering a long term, long position using either Options or futures at that level.

Hewlett-Packard Company (NYSE:HPQ) seems to be breaking out of its trendline resistance. Consolidation above the $50 level will confirm substantial rise to come. Hewlett-Packard is a nicely priced stock that allows for very efficient trading, using single stock futures on the underlying up trend, and protective Puts only as long as any corrections last.

JPMorgan Chase & Co (NYSE:JPM) November Put (Strike price $42) is among todays most traded. JPMorgan is trading just under $44 today, markets are rallying but JPMorgan is still testing its 50 day M.A. Increased Put Option activity may be indicative of investors' concerns on such stocks. JPMorgan’s trend does look like it has formed a bearish flag, and if that is verified, the stock will trade lower.