With 1382 on SPU we have closed above a pivotal point a second close takes us to that 1400 resistance the next would be the old high at 1430 and as I wrote that unemotional post to Frank 1480ish area ggg ( I shot in my own foot).
We had a huge rally in internets and that 580 resistance has been taken out, so next level is the 600 on internets, 530 on SOX, we have now a second close above 2400 on NDX and that is quite bullish, in my opinion tomorrow will be a pivotal day. We will have many a test, one is the close above 530 for SOX , 600 for DOT and SPU next target of 1400, if we maintain this 1382 support tomorrow, we will undoubtedly move to 1400 and beyond test, in this case 625 on DOT will be first objective as we break 1400 on SPU.. I have decided to ride this rally and will like to continue on with my long puts till the end of the period, I did recover some of the cost by selling SOX 480's and BKX 780's as we broke through 1371.. I got 67/8 on SOX puts and 73/8 on BKX.. these are well outside in percentage terms and I will try to settle them at 1400 resistance leaving the 1350's SPU intact for a test.. I am looking at BKX it hit that 829.9 point reversed and closed below its 50 days MA, in my opinion this 50days has to be taken out asap if this not a fake out rally, quote.yahoo.com^BKX&d=3mm I will be looking at it carefully.
Yahoo looks like heading for 175 area and AMZN 150.. AOL is the best call if this rally continues and probably some of the second tiers come into play.. like CMGI, EXDS, BRCM.. PSIX MSPG's SCH and EGRP's will not stay that long in the bottom if this 600 is taken out.. but one thing is sure we need to see that 1382 support is held on SPU otherwise below 1368 I will blow out my short SOX, BKX, puts, one day rallies are most suspect but with our tools we will see that we climb this mountain of worry with best of tools.. buying stocks at these levels is <<dangerous>> go for options if my levels are taken out only, otherwise sit and relax, don't try to jump on the train if you have missed it, you will see lower entry points, if you have long calls established on individual stocks let them run until your critical 1333 is taken out, that is long way from here.. |
