Yesterday recap of 'limit posts'.. in fast market what did we do!
Thursday, Jul 29 1999 9:52AM ET
Reply # of 27887
<<Pits are long at 1350 and so am I long on SPU options with a stop loss at 1336.. area.. If 1344 breaks I will sell some futures and continue with my long .. I will cover at 1339,the short futures.. and expect the bounce from lows..>>
The long option premium eroded as 1350 was not held, we tested the 1338 area a point above where I indicated a reversal in case 1350 is not held, I sold some futures at 1344 left my options long intact, what I bought for 17 and change were trading at 12-13 and change, but futures helped a lot, I covered them at 1340.. I had indicated that in case my broad market indicators NDX SOX PSE DOT sell off <<.. I will close my long options if SOX PSE DOT go thru 495, 590 and 559..>> nearly all these indexes alongwith NDX broke the supports but equally bounced from lows.. NDX 2230 support was solid, towards the end the market closed above my key supports.. SPU 1350, NDX 1330 it did test 1327 very briefly, SOX 492, DOT 560
and PSE 590 even BKX bounced off 850... I go today with my long options and similar strategy, the huge loss at the low of the contract was not realized as my indicators NDX 1330 support helped me a lot. I hope I can have a good run to 1362 resistance so as to get out..
To see the levels work in a fast market where people are in state of panic is a test, my NDX level inter day worked nicely, if you look at the chart the point when 2280-83 was unable to be pierced, the real break came and that was highlighted here..
<<IQBAL LATIF on Jul 29 1999 12:38PM EST
I am looking right now that NDX should take out this 2283 area decisively..it is having problems at this area since last few hours, if we fail to take this out we go and test 2230 area and eventually 2211 may be the test for next week. Until 6th Aug when unemployment data comes out we will have lot higher volatility.. I can see until that time a test of 1328. >>
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