It is always good to start the day what you highlighted yesterday. I like to do it for two reasons one I know if my parameters were respected other I know that it gives a surge of confidence as you see that levels were respected.. Yesterday I wrote...IQBAL LATIF on Jun 7 1999 10:14AM EST
<< Pits think that this thing can go up to 1350, if 1318 holds. NDX 2121 now two
closes above 2131 the 50 day MA we are in good shape. Comp 2497 and 2512
are intermediate resistance levels we get two closes above this we go to old highs of
2677. .....
DOT 550 SOX 402 are now supports if we break these supports -- get out of your long positions. The support of NDX is 2100 and Comp 2475-80....................
The
way individual stocks are behaving it looks these stocks want to go higher, this
looks like an earning driven rally, the market has built in .25% hike at the supports.
The leaders look good, the broad market should follow normally.>>
NDX 2131 and 2512 on Comp are very important levels to hold, we had this one close above that yesterday now we need to close above 1330 today and 2131 on NDX with Comp 2512. As predicted the rally to break 2505 only came when DOT crossed 564 solidly, the 34 point rally in DOT was solid. The configuration of leaders and indexes look solid, however we will work according to the plan, we have picked up the reversal at 1282 and will like to see that 1355 may be tested, now as you all know in a week where very sensitive data is due we will have this volatility in markets reaching new heights, however watch out for your levels and don't get stopped out where we may see false breaks like DOT 528 test.
It is always good to focus now on PSE SOX DOT NDX COMP supports, we know the potential move up but to know your supports is most important. Getting out of positions if these supports are taken out is an art like identification of 1282 and rebound from 1987 or 2367 on SPM NDX Comp. I have been highlighting this potential Tech rally for last 10 days, my only ground was the block buster earnings expected, the market have now realized that and hence you see a rally, when it was a sell signal at 1987 on NDX as most of the respected posters on SI noted actually it was a entry point. Now this is the story of SI and we will continue that for times to come, as my friends in pits say all the time, in absence of these guys on trading desk of big brokerage houses how are we going to run the stops. They get them short at the right point and long at the worst possible entry. Targeting in dark is what these boys do, when they are seeing huge selling pressure they would sell S&P futures to hedge their portfolios when market turns around they run to cover hence increasing momentum of the melt-up further. It is for this reason that although they have in their core best of picks their returns rarely beat S&P performance, majority of them keep paying this extras on big movements to the pits as they completely have no idea of market movement.
If you go back to my posts I have several times indicated that 1292 and 1980 2360 are very legitimate supports and market can come down to those levels to test its strength, unfortunately not many take advantage of these test of supports more often than not I found them wanting in their ability to read the wrong one.
Market trading is nothing but all about thinking opposite to what is suppose to be a 'common knowledge'. SI is the best indicator when most of the posters are buying puts just don't do that go opposite. or wait before key supports are out.. Watch for these simple levels very rarely you would go wrong. Herd mentality is a passport to self-destruction.
I have highlighted break once again even on 1 day and next 45 minutes basis. The most difficult aspect of trading is to get entry where every one is selling, the discounted entry is not a luxury accorded to many as such since we do it very often it is also very important to note also where to take profits.
IQBAL LATIF on Jun 7 1999 10:14AM EST
Pits think that this thing can go up to 1350, if 1318 holds. NDX 2121 now two
closes above 2131 the 50 day MA we are in good shape. Comp 2497 and 2512
are intermediate resistance levels we get two closes above this we go to old highs of
2677.
If we break this on closing basis we go back to lows, we are in range, it is not a
break out still, the range once broken will give me an idea of the new direction. The
way individual stocks are behaving it looks these stocks want to go higher, this
looks like an earning driven rally, the market has built in .25% hike at the supports.
The leaders look good, the broad market should follow normally.
PSE 535, BKX 835 are also important to watch. |
