mr sew and i are thinking the same way.. i belive we are now in basing mode.. no new highs..
Talk : Puts/Calls : Tech Stock Options
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To: Tom Trader (42921 )
From: donald sew
Monday, May 11 1998 12:02PM ET
Reply # of 42927
INDEX UPDATE - INTRADAY
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As strong as the market appears to be strong with the DOW up over 100 there are
quite a bit of weakness or lets say lack of strength:
1) 1/2 of the DOWS strength is due to 3 stocks (DUPONT/GM/CARBIDE)
2) NAZ is up only 3, using the 5:1 ratio thats 15 DOW points
3) SOX,YTK,DDX,CWX,BTK are now negative. These are not major indexes,
except for the SOX, but is still a hint of weakness
4) Important DOW indexes (DRG,BKX,XBD,XAL,XOI,PNX,TRX) are only up
slightly
5) The integrity of the TRIANGLEs which I mentioned previously are still intact.
6) The NEW HIGH/NEW LOWS ratio is low
7) Volume is light.
8) Interest rates right now at 6.002%, up substantially today
I am still staying with my original position that this rally will end in the 9200-9300 range
for the DOW, and the DOW was already a few points shy of 9200 intraday. I am now
feeling stronger that the probability of the DOW hitting 9600 range this week, is
declining substantially. I still feel that the top of this short-term (1-5 days) rally will occur
WED/THUR, and that will be a good time to initiate PUTs again.
Seeya |
